All Forum Posts by: Kathy Kifer

Quote from @Michael Plaks:

Quote from @Kathy Kifer:

I'm so glad I stumbled across this today. Did not see it a while back when I was looking. Your posts are unbelievably helpful.  I finally understand that credit card payments are exempt from needing to send 1099's. What about Debit Cards attached to a checking account? Upon "googling" I see where some folks include Debit Cards as not having to send 1099's, but I want to be certain.

A lot of contractors lump their labor and materials together. What is the best way that you have found to tell them that you need labor & materials separate, so at tax time you can send them a 1099 for labor? I've had some not happy when I have asked them to split it out.

I've tried asking questions to the IRS customer service reps, and didn't have the best luck.

While I cannot cite a specific official guidance on this issue, I consider debit cards exempt. The simple reason is that you cannot even tell debit cards from credit cards without a special software. I could be wrong.

What you tell contractors is: if you do not separate labor from materials, then I have to report my ENTIRE payment, L&M, to the IRS as your income, and then it will be up to you to deduct materials from that income on your end. 

As to asking the IRS reps, let me limit my comment to just three letters: LOL

OK Thanks.  What's even more frustrating than asking the IRS help desk, is asking a Turbo Tax "Tax Specialist". Last time I did that, years ago, I got off the phone and figured it out myself. As far as the debit card - I see that QuickBooks is also stating that they are excluded. 

I'm so glad I stumbled across this today. Did not see it a while back when I was looking. Your posts are unbelievably helpful.  I finally understand that credit card payments are exempt from needing to send 1099's. What about Debit Cards attached to a checking account? Upon "googling" I see where some folks include Debit Cards as not having to send 1099's, but I want to be certain.

A lot of contractors lump their labor and materials together. What is the best way that you have found to tell them that you need labor & materials separate, so at tax time you can send them a 1099 for labor? I've had some not happy when I have asked them to split it out.

I've tried asking questions to the IRS customer service reps, and didn't have the best luck.

Thanks in Advance. 

Thanks, and that is what I’m so concerned about, is issuing 1099’s (either myself or CPA) in error and really causing a mess for the person receiving them. There is a post on here of someone that happened to because goods and services were not separate. 

Ok, thanks. Did that change at sometime in the recent past? Reason I’m asking is because today reading through old posts on this subject, I came across discussions that stated if it was Credit Card, PayPal, or similar avenues, that 1099s aren’t needed since those companies issue them. It was the first I’ve heard of this and saw that M. Plaks who answers quite a bit was discussing it. 

@Michael Plaks HI, ignore this same question on an older post where I just asked it please. Since this is a newer thread I just found, I will ask here. I'm with alot of others and am very confused. Does paying with credit card, venmo, paypal etc.......still allow you to NOT SEND 1099s? Thanks

@Michael Plaks - I just came across your response to this question. Is that still the case that only W9s need to be collected from contractors that you paid with cash/checks? Thanks!

Quote from @Colleen F.:

@Kathy Kifer Are they asking or is it the text you see on their request that says this tenant has indicated they want to pay by credit card. If it just says on their lead that they want to pay by credit card it doesn't mean they will. Many check this option to have it available. If you accept it, I would have the tenant pay the fee. Sometimes when they figure in the fee they decide not to use a CC. Deposits it may put you at risk but you have to judge based on your screening.

Yep, it’s on the lead. It’s just taken a bit to get use to that with FF. Since I posted the question sometime back, I’ve decided not to even worry about Credit Cards. Like you said, some will have it listed I’ve found, but never mention it again. I took off the option for me to even take them and things have been going fine lately. I’ve got someone now for 6.5 months, so I’m happy 😊

Quote from @Erin Spradlin:

@Kathy Kifer - I would add additional platforms: Airbnb and Zillow to get more traffic on your medium-term rental. We do not take tenants that want to rent more than two weeks out from our next availability date, unless they want to close the gap (money wise) between when they arrive and the two week threshold. This strategy has worked pretty well for us since 2017. 

As a new midterm host, I do think the biggest issue is vacancy and being mindful of that. Being on more platforms should help. 

 @Erin Spradlin Have you actually had guests that will pay to fill that gap even though they are not there yet? I thought about that, but was hesitant to say anything like that to a potential guest. 

Quote from @Colleen F.:

@Kathy Kifer  Especially if this is a two bedroom that parking spot issue will be a problem and may make it necessary to drop price.  If your ad doesn't already specify you should say 1 vehicle limit. I have long term rentals like this and I include it in the ad, even then you get people who don't read it however it does cut down on contacts that you can't house. Also check out if it is possible to get another space from someone who isn't using it. 

 Nope, its a 1 bedroom and the ad specifically says only one car, but I still get the requests from folks that say they read it, but were just checking.  I just added the "only 1 car" to a second section in FF, so they can read it twice.  Nope, not possible to get another space unfortunately at this time. So just hoping for that single traveler at the moment :)

Quote from @Colleen F.:

@Kathy Kifer  my deciding factor would be what the one month booking is for, will it likely extend, and are you seeing any activity in your area that just isn't booking your unit.     I would accept if it is work that may extend. If it is someone on vacation in the area I would be more cautious.  I cannot do short term rentals though. You could just hold off until 1 month prior too.

If there are a lot of leads in your area and you are not booking look at why before you accept something farther out.  You might need to improve the attractiveness of your listing.  Generally unless you think you would fill it with someone for a longer period and you are getting activity in the area you may be better taking someone. You also need to be sure to get a deposit given it is farther out.  You want to be clear about what is not refundable in case of cancelation.

 What hurts me, is that I only have a spot for one car/truck due to it being a condo assoc. I've had to turn away 2 couples in this last month that needed 2 parking spaces. That's the issue :(