Thank you for the opportunity to address this issue. Federal law requires that every business send out a 1099 to individuals who receive income over $600. As a real estate business, [redacted] manages rental properties for owners. [redacted] was an owner we property managed...
for. Our management agreement ended December 2016. According to state law, the deposit can be held for 30 days at which time it is assessed whether or not the deposit is refunded to the tenant or is given to owner. We released the deposit in 2017. The document that is used to determine this is the lease contract and or any other communication and agreements between tenant and owner. [redacted] released the deposit money to owner, [redacted], therefore, it is income to the owner. Had we released the deposit check to the tenant, the tenant would not have been 1099 as it would not have been income. Once monies are released to the the proper parties, [redacted] has no knowledge of what the parties do with the money. I think the confusion for [redacted] is that once she received the deopsit money, she then wrote the tenant a check. Again, I have no knowledge or way to confirm this. I only know that I sent her the tenants deposit, which is income to [redacted]. [redacted] was informed of this information. [redacted] also checked with their CPA, and the CPA confirmed that [redacted] needed to be 1099'd according to Federal law. We encouraged [redacted] to contact her CPA to help her on her tax form to show the income and then the returned deposit money as a debit. Let me know if there is any other information I can provide. Thank you, [redacted]
Thank you for the opportunity to address this issue. Federal law requires that every business send out a 1099 to individuals who receive income over $600. As a real estate business, [redacted] manages rental properties for owners. [redacted] was an owner we property managed...
for. Our management agreement ended December 2016. According to state law, the deposit can be held for 30 days at which time it is assessed whether or not the deposit is refunded to the tenant or is given to owner. We released the deposit in 2017. The document that is used to determine this is the lease contract and or any other communication and agreements between tenant and owner. [redacted] released the deposit money to owner, [redacted], therefore, it is income to the owner. Had we released the deposit check to the tenant, the tenant would not have been 1099 as it would not have been income. Once monies are released to the the proper parties, [redacted] has no knowledge of what the parties do with the money. I think the confusion for [redacted] is that once she received the deopsit money, she then wrote the tenant a check. Again, I have no knowledge or way to confirm this. I only know that I sent her the tenants deposit, which is income to [redacted]. [redacted] was informed of this information. [redacted] also checked with their CPA, and the CPA confirmed that [redacted] needed to be 1099'd according to Federal law. We encouraged [redacted] to contact her CPA to help her on her tax form to show the income and then the returned deposit money as a debit. Let me know if there is any other information I can provide. Thank you, [redacted]