8 Replies Latest reply: Feb 13, 2019 8:17 PM by brunelleaj RSS

    1099 multiple property issues

    rtibbs4 Contributor

      Hi, I was wondering if anyone has had any issues with Yapstone in regards to having multiple properties? We are provided two 1099K's because the props are in MA and VT and each state has different requirements. One 1099 is for the two props combined and one is for just the VT prop.

       

      The VT prop 1099 looked way out of order. Too high. I reconciled the MA property but the remaining for VT looks to be 7K too much. I contacted Yap by phone and the rep said it looks like they may have cross posted some payments and to contact Yap support... send copies etc. We did so and got the canned explanation of what a gross 1099k is. Have asked them to actually look at it and waiting for a response.

       

      Also tried to reconcile it with the VRBO payment summary. Almost none of the months match up and I checked previous months to see if the numbers carried forward on deposits but no.

       

      Any comments or co misery welcomed.

        • Re: 1099 multiple property issues
          feibus Senior Contributor

          What are the specific requirements by each state for those 1099s?  Do they supersede any documentation you already have if the 1099s are wrong?

            • Re: 1099 multiple property issues
              rtibbs4 Contributor

              Hi,

               

              MA requires all income and can be on one 1099. VT requires only the income from a property located in VT.  I have read some owners produce their figures accompanied by a letter of explanation but I'd rather not take any chances to additional scrutiny by the irs. I'm speaking with our accountant next week and will ask his opinion.

                • Re: 1099 multiple property issues
                  feibus Senior Contributor

                  Always best to defer to an accountant, but a few things...

                   

                  The IRS isn't getting involved in what your state might want.  That's your state Dept of Revenue or whatever it's called.

                   

                  The IRS is probably not even going to get involved in your tax return provided it makes sense and doesn't take weird deductions suddenly.  They don't have the money or time to chase pennies... that's intentional on Congress' part.

                   

                  The state might look or they might not, but remember they're getting hundreds of thousands of these (or in the case of VT, maybe just one hundred thousand of them)... and they really won't care as long as the numbers aren't hugely different.  And since you might get rentals via check with no 1099 on it, they probably aren't even looking at them anyway.

                   

                  But... IANAA, but I'll bet your accountant will just tell you that you need to keep documentation and just roll with it.  First step is never an audit; first step is to send a letter requesting additional supporting documentation.

                    • Re: 1099 multiple property issues
                      rtibbs4 Contributor

                      Thanks Feibus,

                       

                      I believe you educated a few of us on here regarding the traveler fee a while back as it was included in the 1099. The customer service rep I spoke with yesterday said that is no longer the case. I went back and forth with him a couple times but he didn't budge. It seems to me with our numbers is that it is included.

                       

                      Any input on this? Thanks in advance.

                        • Re: 1099 multiple property issues
                          feibus Senior Contributor

                          Actually, I've never gotten a 1099 from Yapstone or any other merchant processor.  Not enough transactions each year through one processor.  So I didn't educate anyone on what was in the numbers there.  You might be thinking of how I documented the numbers for Florida listings as it pertains to the new taxing stuff.

                  • Re: 1099 multiple property issues
                    brunelleaj New Member

                    Hi,

                     

                    I might be wrong in this but I thought you have to pay State taxes in the state you live in NOT the state the property sits in. Yes you need to pay Hotel/Stay tax  to each state a property sits in.  But the annual State income tax (April filing) is to the state you live in and is income tax. That is what the 1099 is for.

                     

                    Correct me if anyone knows differently

                      • Re: 1099 multiple property issues
                        feibus Senior Contributor

                        You're getting into territory where you want to have an accountant advise you.  There are issues involved with having a business (and a VR for rent is a business) that's in a different state from where you live and your accountant can advise you correctly on your tax liabilities.

                          • Re: 1099 multiple property issues
                            brunelleaj New Member

                            Thanks for the reply

                            We have been doing our taxes under the guidance of a tax accountant with a large tax firm for years. He is fully aware of where our properties are and that they are not in the same state as where we live. And he has never filed with a state that is not our home state

                            I agree that this may be different from state to state- so good advice - people need to check on their own circumstances