If you own a company and the company pays home office rent, does the company have to 1099 the owner?
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.
Posted on July 19th, 2008 by admin
Filed under: United States
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My company is a small women owned 8a certified company. How do I go about going after government contracts?What happens to employees when a small company is bought-out by a much larger company?company?-
Tags: Classified, Income Tax, Monies, Office Rent, Personal Tax Return
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.