Wise Property Solutions is a property management company which is the region’s leader in community association management- the only certified and accredited condominium association management and HOA management company with offices in Knoxville and the Tri- Cities, serving the Mountain South. At Wise Property Solutions, we are contributing to our client communities through our commitment to the industry’s best practices and ongoing professional development. Our team of highly trained property managers strives for an efficient, problem-free community with 100% Satisfaction Guaranteed.
Devoted exclusively to the management of community associations, our homeowners association and condominium managers understand the unique needs of each community. We are proud of both our growth and reputation for offering an unparalleled level of professional service. Our services equip and empower board members to effectively lead their associations.
“...By aligning our association with Wise Property Solutions we are allowing a professional organization with proper training, systems and knowledge to streamline our efforts...saving us time and money...giving more prompt service to homeowners,”
Like any other small business, condo and homeowner associations need a little help to keep everything running smoothly. You may hire a contractor to do landscaping, cut the grass, paint the buildings or clean common areas. In addition, you may get assistance from an accountant, attorney and other property management professionals that you pay throughout the year. These people are contractors, so you should be issuing a Tax Form 1099-MISC to each contractor.
A 1099-MISC is issued to contractors who provide services for payment. Below are some of the rules that can apply to community associations. Visit the 2015 IRS instructions for more rules and information on completing the form.
As you probably noticed, an amount that totals at least $600 triggers the 1099-MISC. This doesn’t have to be a one-time payment. Any combination of smaller payments to an individual contractor during the year that total $600 or more means that your HOA needs to issue a 1099-MISC.
The IRS rule is that all 1099-MISCs should be in the hands of the recipients by January 31.Because January ends on a weekend this year, the deadline is extended to February 2. You also need to prepare form 1096 for the HOA, which summarizes all the information from your 1099s.
Accountants and property management companies serving community associations should be familiar with 1099-MISC due dates. Ask about the status of your 1099s. If you fail to issue timely and correct 1099-MISCs, your association may be subject to a penalty for each form that is amended or late.
IRS Form 1099-MISCs aren’t difficult if your association hires just a few contractors. But, it can get confusing when many contractors provide services for your association. . Contact your accountant, or professional community association manager, to help you Board understand all your options and avoid putting your HOA at risk.