Questions

My company rents a lab from a nonprofit corporation. Do we need to issue them a 1099-MISC?

My company rents a lab from a nonprofit corporation. Do we need to issue them a 1099-MISC? My understanding is we do not need to issue 1099-MISC to any corporations (except for attorney fees).

2answers

Your company is required to file Form 1099-MISC for each person you paid rents of at least $600 during the year. There are, however, certain exceptions where some payments do not have to be reported on Form 1099-MISC. Generally, any payments made to a C corporation, S corporation, or an LLC treated as either a C or S corporation, are exempt from reporting. In addition, payments to a tax exempt organization are also exempt from reporting. You should request the non-profit organization complete and sign a Form W-9 which certifies its tax exempt status. You can certainly report the rents if you wish, but you are not obligated to report rents or other payments to tax exempt organizations.


Answered 10 months ago

Hi:
Ultimately, this is between you and your tax preparer, but given that the 1099-MISC includes a section for rent paid, it certainly reinforces this key expense as a distinct cost of doing business.
Meanwhile, the nonprofit will appreciate being able to point to non-donation revenue.
Good luck.
Kerby


Answered a year ago

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