Easement paid to corporation
Question
1) I paid easement (right to use land, but not purchase the land) to a company that is Corporation. Do I still issue a 1099-Misc Rent (box 1) to the company even though they are a Corporation? 2) We purchased a property from a company that is Corporation. Do I still issue a 1099-S even though they are a Corporation?
Answer
Here is what you need to know:
Corporations, but for medical and legal service providers, are not reportable. Just make sure and check they are in fact a corporation and document why you chose not to report. Your best line of defense is always in starting with the W-9 and keeping the W-9 showing corporate status on file.