gisbize asked:
If you own a company and the company pays home office rent, does the company have to 1099 the owner? In other words, I assume the office rent is rent exp to the company and the monies rec’d by the owner is rental income. How is the rental home rent income classified on the personal tax return.
If you own a company and the company pays home office rent, does the company have to 1099 the owner? In other words, I assume the office rent is rent exp to the company and the monies rec’d by the owner is rental income. How is the rental home rent income classified on the personal tax return.
September 24th, 2009 at 7:26 am
The company would need to send the owner a 1099-misc for any rents paid to them if the owner is not incorporated. For example, if the owner is an individual, an LLC, or a partnership, they will need to send them a 1099 for the amount of rent paid to them as it is income. If the owner is an incorporated company, they do not need to do this. Regardless of the owner, the company will report it as rental expense on their tax return
Since you are asking how the income is classified on a personal tax return, I assume its an individual you are asking about. They would report it on Schedule C of the 1040 as rent income.
I hope that makes sense. Good luck.