How Do Tax Forms Like the 1099-K Work in TenantCloud?

TenantCloud provides tax reporting features to ensure compliance with IRS requirements for users who process online payments. Below, we outline the key details, processes, and frequently asked questions about the 1099-K form and its functionalities.

Overview of the 1099-K Form

The 1099-K form is a required IRS document that reports the gross amount of online payments processed through TenantCloud. It does not represent taxable income or total earnings but serves as an informational report for accounts meeting the IRS reporting threshold.

Additionally, the 1099-K form is part of TenantCloud's comprehensive tax reporting tools designed to assist landlords, ServicePros, and property managers in meeting tax compliance obligations effectively.

Who Receives a 1099-K?

The 1099-K is issued to Landlords, Owners, and ServicePros with an active online payments account in TenantCloud, provided they meet the applicable IRS reporting criteria.

TenantCloud also facilitates the generation of 1099 forms linked to distributions sent from owner accounts, provided the necessary tax entity and banking details are set correctly.

Procedures for Updating and Confirming Tax Information

To ensure correct issuance of tax forms like the 1099-K, users should:

Update Business Details: If you operate as an LLC or similar entity, update your TenantCloud account to include your LLC’s legal entity name and EIN. This ensures that tax forms are issued under the LLC name rather than your personal name.
Confirm Tax Information: Navigate to Settings > Online Payments > Tax Forms in TenantCloud and click "Confirm your tax information" to review and verify your details.

Collect tax identifiers such as SSNs or EINs using W-9 forms from your tenants or owners to ensure all account details support accurate tax reporting.

Subscription-Related Implications for Form Issuance

Even if you cancel your TenantCloud subscription, you will still receive a 1099-K form for payments processed during the year, provided you meet the IRS reporting threshold. It is essential that your confirmed tax information remains up-to-date to facilitate form generation and delivery.

Delivery Methods for Tax Forms

The 1099-K form is delivered electronically via email once it is prepared. Users can download the document from the email and print a physical copy if needed. TenantCloud no longer offers paper mail delivery for these forms.

In addition to 1099-K forms, TenantCloud supports other functionalities for managing tax forms that may include generating 1099s linked to distributions, but tenants must note that TenantCloud doesn’t provide W-9 forms or related tax documents.

Frequently Asked Questions

Does the 1099-K Form Reflect Taxable Income?

No. The 1099-K form reflects the gross amount of online payments processed through TenantCloud and does not represent your taxable income or total revenue. Consult a tax professional for assistance with determining taxable income.

Will I Receive a 1099-K Form If I Am Not an Active Subscriber?

Yes, as long as you meet the IRS reporting threshold for online payments processed through TenantCloud during the year.

How do tax forms like the 1099-K work in TenantCloud?