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My wife and I own a single family home that has been rented to various families since 1984. The current tenant (13+ years) is a retired Catholic nun that forwarded a request from the Assistant Treasurer of her Motherhouse.

The request reads in part:
"I need your help in getting information from your landlord. I am attaching a W-9 Request form for Taxpayer Information to be filled out by your landlord. . . . We need this information because we have to file the 1099 Tax Forms for the rent that has been paid by you to your landlord. This rent is considered income for them and we have to report it to the IRS."

I assume this is the result of some new reporting requirement and the Order pays or assists in paying the rent. If it matters, the lease is between us and the Sister as an individual and she pays rent with a personal check, although that may be drawn on the Motherhouse account.

My tenant thought this was a one-time thing. This is a new one on me, Form 1099 for rent. Can some one enlighten me?

George
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My tenant thought this was a one-time thing. This is a new one on me, Form 1099 for rent. Can some one enlighten me?

Rents paid are reported on Form 1099-MISC, box 1. Presumably the rent is being paid by the church and not the individual.

Ira
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Sounds like the product of an over-zealous bookeeper at the Motherhouse level.
Somebody at some level must be treating this rent payment as a business expense. As the Motherhouse is, presumably, a non-taxed entity, I'm not sure what the point is.
In any event, if you're a TurboTaxer, there is a line entry for rents received and reported via 1099-MISC and a separate line entry for rents received otherwise. The only onus on you is making the entry on the correct line so the IRS computers can match against any 1099 the Motherhouse might issue. The 1099 simply documents a deduction for the issuer, not a receipt by you. But it does create the small burden of ensuring you make the entry on the correct line.
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Sounds like the product of an over-zealous bookeeper at the Motherhouse level.
Somebody at some level must be treating this rent payment as a business expense. As the Motherhouse is, presumably, a non-taxed entity, I'm not sure what the point is.


It's not an overzealous bookkeeper. Tax-exempt entities are required to file 1099 forms where appropriate. See the instructions for Form 1099-MISC, www.irs.gov/pub/irs-pdf/i1099msc.pdf.

Ira
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In any event, if you're a TurboTaxer, there is a line entry for rents received and reported via 1099-MISC and a separate line entry for rents received otherwise. The only onus on you is making the entry on the correct line so the IRS computers can match against any 1099 the Motherhouse might issue. The 1099 simply documents a deduction for the issuer, not a receipt by you. But it does create the small burden of ensuring you make the entry on the correct line.

I disagree. The onus is to report the income in the rental portion of Schedule E. Perhaps one of the ERO's on the board can tell us whether the input field you reference is even sent to the IRS.

I have never used the input field for NEC reported on a 1099-MISC. I simply report the income on line 1 of Schedule C without tying it to the 1099. The IRS has never bothered me looking for double the amount I reported.

Phil
Rule Your Retirement Home Fool
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The income does indeed flow to Line 1. My reference was to the input format in TurbTax.
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The income does indeed flow to Line 1. My reference was to the input format in TurbTax.

You were clear, but evidently I wasn't. I'll rephrase. I don't think the IRS cares what input method you used as long as the income winds up reported on Schedule E. Specifically, they don't care whether you tell TT that it was on a 1099-MISC or not.

Phil
Rule Your Retirement Home Fool
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I would agree, the IRS couldn't care less how you make your entry in TurboTax as long as it ends up on a line the IRS likes on their forms.
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Ira,
As I read the question, the contract is with and the rents are paid to the landlord by the Sister. I am unable to find in the 1099 instructions where it says that an individual tenant must issue a 1099 for rents paid.
If the Motherhouse is paying the Sister a housing stipend, I could see where the Motherhouse might want to issue a 1099 to the Sister.
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As I read the question, the contract is with and the rents are paid to the landlord by the Sister. I am unable to find in the 1099 instructions where it says that an individual tenant must issue a 1099 for rents paid.
If the Motherhouse is paying the Sister a housing stipend, I could see where the Motherhouse might want to issue a 1099 to the Sister.


There's enough ambiguity in the OP to drive a truck through. You are correct that an individual tenant does not issue a 1099 (unless the rent is paid in connection with a business, but that's not the case here). I'm not conversant in the financial operations of all religious entities, but if the rent is paid out of a communal clergy fund, then the 1099 might be appropriate.

As to your final statement, if the Motherhouse is paying the Sister a housing stipend, that would be reported on a W-2 as a parsonage allowance (box 14).

Ira
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