According to the most recent Census Bureau study, there are around 20 million rental properties in the U.S. But many small landlords struggle with filing their tax documents correctly each year.
Handling tax statements and 1099s can be overwhelming for property managers in Raleigh, especially with all the specific requirements involved. Today we're taking a closer look into how Raleigh property managers can simplify the process of preparing and sending tax forms, ensuring compliance and avoiding costly mistakes.
Key Deadlines and Requirements for Handling Tax Statements
Property managers must submit 1099 forms to the IRS by January 31st each year. The deadline ensures that the IRS has accurate records of rental income for landlords. Preparing early can help avoid any last-minute rush, ensuring the forms are submitted on time.
The same January 31st deadline applies to providing 1099 forms to landlords. Property managers need to make sure landlords receive their tax documents in time to meet their own filing deadlines. Using secure delivery methods, such as mail or electronic systems, can help ensure timely receipt.
Throughout the year, it's essential for property managers to keep detailed records of payments made to landlords. Accurate records help with the smooth preparation of 1099 forms and reduce the chance of errors. It will also make it easier to address any discrepancies or questions from landlords or the IRS.
Tax Time Tips: How to Accurately Prepare and Submit 1099s
Preparing and submitting 1099s requires attention to detail, but with the right steps, it can be a straightforward process. There are three key areas property managers should focus on to ensure accuracy:
- Gathering accurate payment data
- Verifying the landlord's information
- Submitting forms on time to both the IRS and landlords
Gathering Accurate Payment Data
The first step in preparing 1099s is collecting all rental income data from the past year. Property managers need to track every payment made to landlords, ensuring that the total income matches what will be reported on the 1099 form. Keeping detailed financial records throughout the year will make this step easier and help prevent errors when it's time to file.
Verifying the Landlord's Information
Before submitting any 1099 forms, it's important to double-check the landlord's details, such as their tax identification number and address. Incorrect information could lead to delays or penalties. Taking the time to verify this information now will save trouble later on.
Submitting Forms on Time
The final step is submitting the 1099 forms. They must be sent to both the IRS and the landlord by the end of January. Submitting the forms early can reduce stress and prevent any last-minute complications, helping property managers stay compliant.
Property Management Raleigh: Tax Statements and 1099s
Handling tax statements and 1099s doesn't have to be overwhelming for Raleigh property managers. By staying organized, keeping accurate records, and meeting deadlines, the process becomes much smoother. With the right preparation, you can ensure both compliance and peace of mind during tax season.
PMI Triangle is proud to use the latest technology to keep our clients fully informed about their investments. We're a full-service real estate asset management company, working under the umbrella of a company with decades of leadership in the field.
Get in touch today to find out how we can help with your property!
