1099-NEC for Rent Payments to Landlords
Important Clarification
Rent uses 1099-MISC, not 1099-NEC
1099-NEC is for services (nonemployee compensation). Rent payments go on 1099-MISC Box 1. However, payments to property managers or contractors (services) DO use 1099-NEC.
Confused about which form to use? This guide clarifies when 1099-NEC applies to property-related payments and when you need 1099-MISC instead.
The Key Distinction: Services vs Rent
1099-NEC (Services)
Use when someone performs work/services for you:
- Property management services
- Repair/maintenance contractors
- Cleaning services
- Landscaping
1099-MISC (Rent)
Use when paying to occupy space:
- Office rent
- Retail space rent
- Warehouse rent
- Equipment rental
When to Use 1099-NEC for Property Payments
These property-related payments ARE reported on 1099-NEC:
Property management fees
Services, not rent—management is a service
Example: Pay manager $500/month to handle property
Cleaning/maintenance contractors
Services performed on property
Example: Pay handyman $1,000 for repairs
Landscaping services
Services for property upkeep
Example: Pay landscaper $750 for seasonal work
Consulting fees
Professional services
Example: Pay real estate consultant $2,000
When NOT to Use 1099-NEC
These payments should NOT go on 1099-NEC:
Rent payments to landlords
Use 1099-MISC Box 1 instead
Rent for office/retail space
Rent, not services
Lease payments
Rent equivalent
Payments to corporations
Generally exempt
Personal rent (your home)
Not a business expense
Quick Reference: Which Form?
| Payment Situation | 1099-NEC? | 1099-MISC? | Notes |
|---|---|---|---|
| Office rent to individual landlord | 1099-MISC Box 1 | ||
| Property manager fees | Services, not rent | ||
| Rent to corporation | Corps usually exempt | ||
| Repair contractor | Services | ||
| Cleaning service | Services | ||
| Your personal apartment rent | Not business |
The $600 Threshold
Both 1099-NEC and 1099-MISC have a $600 threshold:
- 1099-NEC: File if you paid $600+ for services
- 1099-MISC: File if you paid $600+ in rent
- Exception: Payments to corporations generally don't require 1099s
Need to Generate a 1099-NEC?
For property managers, contractors, and service providers. Create IRS-compliant 1099-NEC forms in minutes.
Frequently Asked Questions
Do I need to send a 1099 to my landlord for rent?
If you're a business paying rent to an individual landlord of $600 or more, you need to file a 1099—but it's 1099-MISC (Box 1), not 1099-NEC. Rent is reported on 1099-MISC. If you're paying rent for personal use (your apartment), no 1099 is needed.
What's the difference between 1099-NEC and 1099-MISC for rent?
1099-NEC is for nonemployee compensation (services). 1099-MISC Box 1 is for rent payments. If you pay someone to manage your property (services), use 1099-NEC. If you pay rent to occupy space, use 1099-MISC.
Do I 1099 a property management company?
If you pay a property manager (individual or LLC taxed as partnership/sole prop) $600+ for management services, file 1099-NEC—those are services, not rent. If the management company is a corporation, you usually don't need to file any 1099.
What if my landlord is a corporation?
You generally don't need to file a 1099 for rent paid to corporations (C-corps or S-corps). The exception is attorneys and medical/healthcare payments, which require 1099s regardless of corporate status.
What's the threshold for 1099-MISC rent reporting?
The threshold is $600. If your business paid $600 or more in rent to an individual landlord during the year, you must file 1099-MISC. Below $600, no filing is required (but the landlord must still report the income).
I'm a small business renting office space. Do I file a 1099?
If your landlord is an individual (or LLC taxed as individual/partnership) and you paid $600+ in rent for business purposes, file 1099-MISC Box 1. If the landlord is a corporation, you usually don't need to file.
Do I need to get a W-9 from my landlord?
Yes. Before filing any 1099, you need the recipient's TIN (SSN or EIN). Request a W-9 from your landlord. If they refuse to provide one, you may need to begin backup withholding (24%) on rent payments.
When is the deadline for 1099-MISC rent reporting?
1099-MISC (for rent in Box 1) is due to recipients by January 31 and to the IRS by February 28 (paper) or March 31 (e-file). Note: 1099-NEC has a stricter deadline of January 31 for both.
File the Right Form
Services use 1099-NEC. Rent uses 1099-MISC. Generate the right form for your contractor and property payments.
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