There are two different 1099 forms that are most applicable to rental businesses. Here is some information about how Hemlane gets involved with your taxes.
Hemlane will file a 1099-K to the IRS if the following criteria are both met within the tax year:
- You received over $20,000 of payment transactions (incl. rent) through Hemlane AND
- Hemlane has processed over 200 payments to you
The Form 1099-K requires the reporting of gross transaction volume, and the reflected amount may be higher than your received payouts or profits. You can download your transactions in Hemlane on the financials tab to learn more.
It is very important to note that this only applies to payments processed online, through Hemlane. If you were paid offline and record a transaction in Hemlane, then we do not report it.
Form 1099-MISC is generally used to report business payments over $600 independent contractors. Hemlane does not file or create these for you.
Here is a bit more information about the 1099-MISC and 1099-K, in case you are curious about the difference.