1099s Are Coming: What Property Owners Need to Know as You Prepare for Tax Season
Here’s what to expect—and how to use it as you prepare to file your 2025 taxes.
As we officially close the books on another year, tax season is right around the corner. For property owners who work with a property management company, one important document to be on the lookout for is your Form 1099.
Here’s what to expect—and how to use it as you prepare to file your 2025 taxes.
What Is a 1099 and Why Am I Receiving One?
If you own rental property and receive income through a property management company, the IRS requires that rental income paid on your behalf be reported using Form 1099-NEC (or in some cases, Form 1099-MISC).
Your 1099 reflects the gross rental income collected during the calendar year—before expenses such as management fees, maintenance, or repairs are deducted.
When Should I Expect My 1099?
By IRS rule, property management companies must issue 1099s no later than January 31.
Your form will be posted by mail or electronically (depending on your delivery preference) by the end of January.
If you haven’t received your 1099 by early February, it’s a good idea to contact your property manager to confirm delivery details.
How Do I Use My 1099 for Taxes?
Your 1099 is used when filing your federal (and state) income tax returns. It helps your CPA or tax preparer:
- Verify rental income reported to the IRS
- Reconcile income with your year-end owner statement
- Ensure accurate reporting on Schedule E or your business return
Keep in mind:
The 1099 shows income only, not your net profit. Your deductible expenses—such as repairs, management fees, utilities, insurance, and depreciation—will still be applied separately when your taxes are prepared.
What Should I Do Now to Prepare?
To stay ahead of tax season, we recommend:
- Reviewing your year-end owner statement
- Confirming your mailing and email address are up to date
- Sharing your 1099 and statements with your tax professional
- Keeping all supporting documents for your records
If you notice any discrepancies, reach out to your property management team as soon as possible so questions can be addressed early.
A Quick Reminder
While we’re happy to help explain your statements and reporting, your CPA or tax advisor is the best resource for tax-specific questions and filing guidance.
