At year end you have twelve monthly owner statements, and the IRS requires a property manager who collects rent for an owner to report that rent to the owner on Form 1099-MISC. For 2026 rent, your copy must reach you by February 1, 2027. This page sets out what arrives when, and what your accountant will ask for.
It is general information, not tax advice. Your CPA applies it to your return.
What you already have
Each monthly statement is a transaction ledger plus a summary of income, expenses by category, net, distributions and cash held. Twelve of them, with the vendor invoices behind each repair line, are most of what a Schedule E needs. We keep leases, inspection reports, invoices and tax documents organized through the year, so there is no year-end scramble on our side or yours.
What you receive at year end
- December statement. The same format as every month, sent at the end of December when we close the books.
- Annual summary. A calendar-year summary of the twelve months, issued at year end.
- Form 1099-MISC. Reporting the gross rent we collected for you during the year. We issue one to every owner, every year, regardless of amount. We send 1099s as early as we can after the books close, and never later than the IRS deadline.
- Vendor invoices on request. Any invoice, lease or inspection report by email, no charge.
- Optional Annual Budget and Performance Review, $225, covering maintenance trends, budget and how the property performed.
The IRS rule on rent collected by a manager
The IRS instructions for Forms 1099-MISC and 1099-NEC say that when rent is paid to a real estate agent or property manager, the payer does not report it to the owner. Instead, the agent or manager must file Form 1099-MISC reporting the rent paid over to the property owner. That is why you receive a 1099-MISC from us rather than from your tenants.
The amount reported is the gross rent we collected for you, box 1, before the management fee, repairs and other expenses (Treasury Regulation 1.6041-1(e) and (f)). Your accountant deducts the fee and the expenses from your statements. The 1099 figure will therefore be higher than the cash you received, and that is correct.
Threshold. The reporting threshold is $2,000 for payments made in 2026, under 26 USC 6041 as amended by Public Law 119-21, section 70433. It was $600 for payments made in 2025. Filing below the threshold is permitted, and we do: we issue a 1099-MISC to every owner regardless of amount. The figures are here as a note for your CPA.
Owners taxed as corporations. Rent paid to an owner taxed as a corporation is not reportable on Form 1099-MISC. We may still send you one voluntarily so your records match ours.
Your W-9. We collect a completed Form W-9 from every owner at onboarding, so the 1099 is issued with the correct name and taxpayer number. If the property is owned by an LLC, tell us how the LLC is taxed; a single-member LLC usually reports under the member’s number.
Dates
Dates below are for tax year 2026, the forms issued in early 2027.
| Date | What |
|---|---|
| December 31, 2026 | Tax year closes. MDE lead registration renewal is also due by December 31 in a renewal year for pre-1978 rentals ($75 per unit, once every two years). |
| End of December 2026 | December statement and the calendar-year summary, sent when we close the December books. |
| February 1, 2027 | Deadline for the 1099-MISC copy to reach you, and for the 1099-NEC forms to reach vendors and be filed with the IRS. January 31 falls on a Sunday in 2027, so the date moves to Monday. We aim to send both well before this date. |
| March 1, 2027 | IRS deadline for paper-filed 1099-MISC. |
| March 31, 2027 | IRS deadline for electronically filed 1099-MISC. |
| April 15, 2027 | Individual federal return due, unless extended. |
When an IRS date falls on a weekend or a legal holiday, it moves to the next business day.
Vendor 1099s
Vendors who worked on your property are paid through us. Every vendor must have a W-9 on file before payment; no W-9, no pay. We file a Form 1099-NEC for every vendor we paid on your behalf, every year, regardless of amount. The IRS threshold for 1099-NEC is the same $2,000 for 2026 payments, and filing below it is permitted. The vendor payments are also itemized on your statements with the vendor name, so the figures are there for your CPA.
What your accountant will ask for
- The twelve monthly statements and the calendar-year summary.
- The 1099-MISC from us.
- Your mortgage interest statement (Form 1098) from your lender. We do not have this.
- Property tax and insurance bills you paid directly. If we paid them from your funds, they are on the statements.
- Closing statements for any purchase or sale during the year.
- Capital improvements versus repairs. Our ledger descriptions help your CPA decide which repairs are expensed and which are depreciated.
Security deposits and reserves at year end
Security deposits are the tenant’s money. They sit in a separate federally insured account at a Maryland bank, tracked per unit, and are not income to you. Simple interest accrues monthly to the tenant at the greater of 1.5% a year or the one-year Treasury yield on the first business day of the year, under Real Property 8-203. The $500 per unit owner reserve is your cash, held separately, and appears in closing cash on your statement; it is not an expense.
How to ask a question
Reply to any statement email or call or text (240) 916-6008, Monday to Friday 9:00 to 4:00. For a specific question about your return, your CPA is the right person; we supply whatever record they ask for.
Common questions
Why is my 1099 higher than the money I received?
It reports gross rent collected, before the management fee and expenses. Deduct those from your statements.
When will I get the 1099?
For 2026 rent, the IRS requires it to reach you by February 1, 2027. We send 1099s as early as we can after the books close, and never later than the IRS deadline.
Do I get a 1099 if I only earned a few hundred dollars in rent?
Yes. We issue a 1099-MISC to every owner, every year, regardless of amount. The IRS reporting threshold ($2,000 for 2026 payments; $600 for 2025 payments) is a note for your CPA and does not change what you receive from us. Filing below the threshold is permitted.
Do you send 1099s to my contractors?
Yes. We file a 1099-NEC for every vendor we paid on your behalf, every year, regardless of amount.
Can my accountant contact you directly?
Yes. Tell us in writing who they are and we send records to them by email.
What if my address or entity changed this year?
Send a new W-9 before December 31 so the 1099 is issued correctly.
Sources
- IRS, Instructions for Forms 1099-MISC and 1099-NEC (rents, property manager rule, due dates): https://www.irs.gov/instructions/i1099mec
- IRS, A Guide to Information Returns (thresholds and due dates): https://www.irs.gov/businesses/small-businesses-self-employed/a-guide-to-information-returns
- IRS, About Form 1099-MISC: https://www.irs.gov/forms-pubs/about-form-1099-misc
- 26 USC 6041 (information returns; $2,000 threshold for 2026 payments, Pub. L. 119-21 s.70433): https://www.law.cornell.edu/uscode/text/26/6041
- Treasury Regulation 26 CFR 1.6041-1 (paragraphs (e) and (f), rent collected by an agent): https://www.law.cornell.edu/cfr/text/26/1.6041-1
- Maryland Real Property 8-203 (security deposit interest): https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=grp§ion=8-203&enactments=false
- Maryland Environment 6-843 (lead registration fee and renewal): https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gen§ion=6-843&enactments=false
- Maryland Department of the Environment, Rental Property Owners (December 31 renewal): https://mde.maryland.gov/programs/land/leadpoisoningprevention/pages/rentalowners.aspx
- EPG, Financial reporting and owner statements: https://eastern.properties/financial-reporting-owner-portal/
- EPG, Pricing: https://eastern.properties/pricing/
- EPG knowledge base: Accounting Model (owner statements, owner reserve, vendor invoice requirements), SOP Register SOP-20 (no W-9, no pay); 1099 practice confirmed by EPG management, 7 October 2026