Accounting Forms

BGV Provided: To Report Financial Information

Purpose: BGV sends form “1099” to U.S. owners and the IRS if the owner earned $600 or more in rental income for the tax year

  • 1099’s are mailed to owners in January
  • 1099 reporting is handled by the Accounting department

Discovery Questions:

  1. Are you needing information for your taxes related to your rental income for the year?
  2. Are you a U.S. citizen?

*If “YES” to both – then they are inquiring about form 1099

**If “NO” to Question 2 (they are a citizen of another country), they are inquiring about form 1042-S

Forms BGV Requests From Owners

Purpose: BGV would request form W9 from a U.S. owner to verify the owner’s Taxpayer Identification Number (TIN)

  • Think of this as their affidavit that the number they are giving us is theirs
    • If they are an individual – Social Security Number (SSN)
    • If the ownership is in the name of a business entity – Employer Identification Number (EIN)

*VRD usually requests this form when sending a rental contract

**Accounting may also make this request form if the IRS notifies BGV that we have a name/TIN mismatch

General Information Regarding Rental Income – FAQ

Rental income checks are mailed on the 30th of the month after the month the rental occurred

  • For example: checks for rental income earned in February will be mailed on March 30

Rental income can be applied to HOA dues if the owner requests it

  • Please record a Rental Check Note on the owner’s account in TSW accordingly
    • Choose and complete option A, B, or C

**Rental income will automatically be applied to the HOA dues if the owner is in delinquency

No, rental income cannot be applied to Reward Dollars

**Rental income tax year is December 1 – November 30**

Rental income tax reporting is based on when the income is paid to the owner

  • For example: December rental income is processed and paid in January
    • December 2020 rental income is paid in 2021 and reported as income in 2021

The IRS requires that the full amount of rental income earned (keyword being ‘earned’) be reported on the 1099

This is the amount before the owner pays BGV the management fee (BGV’s commission) for managing the rental

  • The commission is automatically deducted prior to sending the owner a check
    • The management fee is basically a bill the owner would otherwise have to turn around and pay, had it not been deducted

*We are not tax professionals so we can’t give tax advice

**We can tell owners that expenses associated with rental income, like property management fees, are generally tax-deductible and they should consult with their tax advisor for guidance