If a tenant is using part of an apartment for business purposes, do they need to send a 1099 to their landlord?

Asked by Chrispy, 11211 Wed Oct 27, 2010

The tenant in question is an actor who is incorporated. His manager is requesting the landlord's social security # for the purpose of sending the landlord a 1099. Assuming some portion of the rent will be (legally) written off, does this call for a 1099?

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First Last, , 90002
Fri Oct 29, 2010
As the link below suggests, the rules are changing regarding 1099 informational returns.

You need to consult with your tax advisor.

PS This is New York City, there is no zoning issue, but NYC does have a unique tax called the Unincorporated Business Tax.
0 votes
Wallace S. G…, Other Pro, Charlottesville, VA
Thu Oct 28, 2010
No * the landlord has no responsibility to provide their tax ID number to a tenant; however, the biggest issue may be zoning so that should be verified first before establishing a business in a residential rental property
0 votes
John Juarez, Agent, Fremont, CA
Wed Oct 27, 2010
Check with your own tax expert. I think the actor's manager is off base.
0 votes
Gerard Dunn, Agent, Chevy Chase, MD
Wed Oct 27, 2010
Chrispy -

What they want to do, and what they have the right to do are separate issues.

Anyone may send anyone a 1099 if they are being paid for a service. A residential apartment rent is an unusual reason to send a 1099.

The owner is not REQUIRED to turn over personal information like a Social Security number to a tenant unless it was stipulated and agreed to in the written lease.

They can still write off the portion of the lease if their CPA says it is legal, there are other means besides 1099 to do so.

Your choice whether you give it to him or not. This may actually complicate your tax filing in the long run. I say don't supply it.

Good Luck!

Gerry Dunn
0 votes
Barbara Ann…, Agent, Brooklyn, NY
Wed Oct 27, 2010
Not to my knowledge, speaking as a self-emplyed individual who uses a portion of my apartment for business purposes and deducts a portion of my rent from my business receipts. The CPA who prepares my taxes would certainly have alerted me to this if it were necessary. 1099 forms are used when a business or self-employed person pays another individual for a service; expenses like rent, advertising, utilities, etc., do not fall under this category. DO NOT give out your social security number to this person.

For the full, expert answer, ask your attorney or CPA, but this sounds might shady to me.
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