Did you know that the Dallas-Fort Worth house market sells homes in under a month? With the hustle and bustle of the Dallas-Fort Worth market, America's fourth-largest television market, landlords here continue to see increased ROI.
But with steady income comes landlord taxes. This is why Texas landlords need to make a sound investment by reading this 1099 tax guide. Understanding the new 1099 laws ensures that your ROI continues to grow in Dallas-Fort Worth for years.
And if you're a new Dallas-Fort Worth landlord, read this 1099 tax guide before signing any tenant agreement. Understanding what you have to report to the IRS on a 1099 form keeps your bottom line out of the red.
1099 Tax Guide for Landlords
Like stock investors and entrepreneurs have to record income on 1099, the same is true for Texas landlords. Furthermore, Dallas-Fort Worth landlords must file a 1099 form for any rental-property contract work starting at $600.
The caveat is landlords must file 1099s for contractors in the same tax year. Specifically, landlords must file a 1099-NEC form if they hire an independent contractor for their rental properties. Some examples of 1099 works include:
Locksmiths and Covid-related cleaning payments also go on 1099s. In addition, Dallas-Fort Worth landlords with no business structure like an LLC or corporation must file a 1099-MISC form. And remember, payments to property management like us also go on the 1099-NEC form.
Of course, Dallas-Fort Worth landlords can rely on our timely and professional property maintenance services. Home River networks with licensed contractors to keep your rental property tenant-ready. And even if a tenant doesn't request repairs, we provide routine property inspections on your behalf.
1099-MISC for Landlords
Dallas-Fort Worth landlords who receive commercial rent must file a 1099-MISC form. This also applies to commercial lease agreements. But landlords making payments to brokers can skip filling out this 1099 form.
If landlords receive rental payments via check, those payments go on the 1099-MISC form. And yes, rent collection is also a part of our superb property management services.
Landlords must also fill out a 1099-MISC for any payment of legal services meeting the $600 threshold. Before the tax law change, the previous rental income threshold was $20,000.
An example of a rental legal service is tenant evictions. And if that unfortunate step becomes necessary, we assist landlords.
Whichever 1099 form is used, Dallas-Fort Worth landlords must have a legal EIN. Single-person landlord companies can also use a social security number.
Furthermore, landlords must have a current address to put down on the 1099 form. Of course, landlords must also report all the rental income accrued in the tax year on the 1099-K form.
Further Information for Landlords
Home River Group understands the day-to-day grind that renal management takes. Therefore, we strive to provide exemplary property management services for landlords in the Dallas-Fort Worth area.
We provide a rental analysis for serious landlords looking to capitalize on the lucrative Dallas-Fort Worth market. Home River Group helps you with a winning marketing campaign to draw suitable tenants. Yes, we help landlords with tenant screening so you can sit back and watch your growing ROI.
Contact Home River Group today to start your Dallas-Fort Worth rental analysis. Our office is in nearby Plano, Texas.