I have a property management business and need to send 1099's to my owners of the properties. I had them as customers but maybe they will need to be vendors. I have their properties separated by class but this doesn't work either.
Yes we all are.
I don't understand this post. I'm sorry but I can't get my 1099's to track income on these properties as vendors.
When you pay them their income (net proceeds), you make them a vendor (as well as a customer). John Smith-v. Then you send the 1099 on the rents you mail to them or their vendor checks.
Thank you Lynda, my accountant says the 1099 is to reflect the gross proceeds not the net otherwise I would have this working. I can't get it to track an income account.
I am sorry. You are right. You can only create 1099's using a vendor name in QuickBooks, however. I would have your accountant send the 1099s for you and give them the gross rental amount to create the 1099's to your landlords.
Thank you Lynda. I found a template for 1099 online so I am just printing my own. It is a shame though as I bought this program and it was suggested for RE and Property management. Oh well.
You track and report the payouts to the Vendor Name version of the owner.
You charge the costs to the Customer Name version of the owner.
You enter the Gross to the vendor, and then reduce it by anything you are holding back.
The account for the Gross is what is mapped for the 1099 reporting.
Perhaps you need someone to review your data file setup for you. This should be a function that is easy to do in QB but the setup and use must be correct for the accounting to work.
You would never map an income account for 1099 reporting.
Thank you for the response. If I enter the gross to the vendor isn't it going to come out a negative number at the end of the year?
For the entry to pay out to the owner, as a Vendor Name, on a check I write, the data would be something like this:
Gross Rents we received for you (posted as an Expense or Liability account payout)
negatives for Holdbacks (things we are charging and taking from your payout, Mr/Mrs Owner)
Total payout is Net
Rent Payout account is the one linked for 1099 reporting.
Thank you but is the rent payout account you refer to the net? If so my accountant says I need the gross on the 1099. I do put the gross rents until they are allocated in a liability account.
Howe, in the details on the lower part, when you payout to the owner, you enter:
first line Gross Rent
next line, NEGATIVE for holdbacks
Map for 1099 reporting only the RENT account, not the holdback account
This way the 1099 reports the Gross, not the payout.
Thank you for being patient with me as I can be quite dense until something clicks.
I can see the gross rents being mapped as a liability account and that may work but as an expense in the end wouldn't it come out with a negative total?? How do you have it mapped?
Think of it as "blinders" on a horse.
You map the liability account.
You don't map any other account.
For only the transactions for the vendor name, for the liability account, QB can only "see" the Gross entries.
Ok thank you, I will see how it works. It didn't like it when I mapped the liability account as a 1099, but it took it. we will see.
Thanks again!
Liability and asset accounts are valid for 1099 payments.
