What is a 1099-K form?
A 1099-K form is an IRS transaction record from a third-party payment network (such as Baselane’s rent collection tool). Form 1099-K contains information, for your tax return, detailing the gross amount of payments received from a third-party payment network. Payment networks are required to provide a copy of the 1099-K to you, and to the IRS if you meet the filing threshold.
Filing thresholds:
2022 tax year: A 1099-K will be generated by the payment network when your gross payments exceed an aggregate of $20,000 and 200 transactions.
2023 tax year: A 1099-K will be generated by the payment network when your gross payments exceed an aggregate of $20,000 and 200 transactions.
What is a 1099-K form used for?
The objective of a 1099-K form is to ensure businesses report their income on their tax returns. A 1099-K is an IRS information record, for you to calculate your business income for your tax return.
Does Baselane provide me with a 1099-K form?
Yes, Baselane’s rent collection tool is a third-party payment network, and we are required to provide any customer that meets the filing threshold with a 1099-K form.
As a reminder, the filing thresholds are:
2022 tax year: A 1099-K will be generated by the payment network when your gross payments exceed an aggregate of $20,000 and 200 transactions.
2023 tax year: A 1099-K will be generated by the payment network when your gross payments exceed an aggregate of $20,000 and 200 transactions.
Is it important to note that filing thresholds are per entity collecting rent on Baselane. For example: If you are collecting rent into a bank account for entity ABC LLC and also collecting rent into another bank account for entity XYX LLC, both on the same Baselane account, each entity will be treated separately to meet the filing threshold and will receive its own 1099-K form.
What does Baselane consider a reportable payment?
All payments received through Baselane’s rent collection tool (e.g. rents, fees, and security deposits) are reportable payments. IRS guidelines require the gross amount of all reportable payment transactions to be reported. Subsequent refunds, returns, or other adjustments are not taken into account
When and how do I receive my 1099-K form?
1099-K forms are finalized and sent to you and the IRS by March 31st (if you meet the filing thresholds above). Baselane, in partnership with Stripe, will send you a link to download a copy of your 1099-K form in February 2023, or mail a paper copy if you prefer.