Who Should Issue Form 1099-MISC?

Your trade or business may be required to issue a Form 1099-MISC for certain types of income paid to others. The general rule is if your business pays an unincorporated entity $600 or more annually for services, rents, etc., the total amount paid should be reported on Form 1099-MISC. If your trade or business pays $600 or more annually for the rental of real estate, machinery or farm grazing land, the amount paid to each entity should be reported in Box 1 of the 1099.

Rent for real estate paid to a real estate agent is not required to be reported on a 1099. If the following four conditions are met, generally you must issue a 1099 for non-employee compensation: • The payment was made to someone who is not your employee; • The payment was made for services in the course of your trade or business; • The payment was made to an individual, partnership, estate, or in some cases a corporation, and • You made payments of at least $600 during the year. Some examples of non-employee ... more.

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