Tax Season, Made Simple: Your 1099 and Tax Documents
What your 1099 reports, why it differs from your deposits, and how to keep your W-9 current.
Presented by Jennifer Potter, Director of Client Success.
Tax season does not have to be stressful, at least not the property management part. This lesson from Specialized Property Management covers the two documents owners ask about most, the 1099 and the W-9, and what to do when something on either one does not look right.
Your 1099
Each year, Specialized issues a Form 1099 reporting the rental income we collected on your behalf. You will find it in your owner portal, posted ahead of the IRS deadline. Your monthly statements for the year sit in the same portal, so everything your tax professional needs is in one place.
When it arrives, compare it against your owner statement for the end of the year. The 1099 reports gross rents collected, not the net amount deposited to you after expenses. If the figure looks larger than what reached your bank account, that is usually why. Your statement for the year carries the expense detail your tax professional will want to see alongside it.
If something on the 1099 is wrong
If the amount does not match your records, or the name, address or taxpayer identification number is out of date, let us fix it. Contact your Dedicated Asset Manager, tell us what looks wrong, and we research it against your account. If a correction is warranted, a corrected 1099 can be issued.
Before you call, compare the 1099 against your statements for the year. Most of the questions we hear each January come down to gross rent versus net deposits, and the statements settle that in a minute. If the numbers still do not line up, or the identifying information is wrong, that is when to reach out.
Your W-9
The W-9 is the form you provide to us. It tells Specialized the legal name, entity type and taxpayer identification number to use when we report your rental income. We collect it when you come on board, and it is the source document behind your 1099.
Whatever your W-9 says is exactly what your 1099 will say. Getting it right up front is the single best way to make tax season uneventful.
When your W-9 goes out of date
Life changes. You might move, retitle the property into an LLC or a trust, change your legal name, or spot a digit that was entered wrong. Any time that happens, send us an updated W-9 as soon as you can, and do not wait for January.
Updating it promptly means your next 1099 is issued correctly the first time. Your Asset Manager can tell you the easiest way to send it.
What we can and cannot tell you
We can tell you where your documents live and how to get them corrected. We cannot tell you how to file, what to deduct, or how rental income fits into your overall tax picture. Those questions belong with your CPA or tax professional, and they will be glad you arrive with a clean 1099 and a full year of statements in hand.
If you need help finding a document in the portal, or something on your 1099 or W-9 deserves a second look, reach out to your Asset Manager.
Key learning questions
- Does the name, address and taxpayer identification number on my W-9 still match how I hold the property?
- When my 1099 arrives, have I compared it against my statements for the year before calling?
- Which questions on my list are for Specialized, and which are for my CPA?
Questions owners ask
Where do I find my 1099?
In your owner portal, posted ahead of the IRS deadline. Your Dedicated Asset Manager can point you to it if you have trouble finding it.
Why is my 1099 higher than what was deposited to my bank?
The 1099 reports gross rents collected, not the net amount after expenses. Your statements for the year show the expense detail that explains the difference.
The amount or my information on the 1099 is wrong. What do I do?
Contact your Asset Manager and tell us what looks wrong. We research it against your account, and if a correction is warranted, a corrected 1099 can be issued.
What is the W-9 for?
It tells Specialized the legal name, entity type and taxpayer identification number to use on your 1099. Whatever the W-9 says is what the 1099 will say.
I moved my property into an LLC. Do I need to do anything?
Yes. Send us an updated W-9 as soon as the change happens so your next 1099 is issued correctly the first time.
Can Specialized tell me what I can deduct?
No. How to file, what to deduct and how rental income fits your tax picture are questions for your CPA or tax professional. We provide the 1099 and statements they need.
Still have a question about your property?
Your Dedicated Asset Manager is your first call. You can also reach the team at support@specialized247.com or through your Owner Portal.