Every January, a lot of rental owners end up chasing a plumber for a tax ID number, or digging through a year of texts to figure out what they paid the lawn crew. It’s a slow, annoying job, and it lands right when 1099 deadlines are closing in.
The short answer: use November and December to get your vendor paperwork in order. Collect a current Form W-9 from every vendor you paid this year, total what you paid each one, note how you paid them, and hand a clean list to your CPA. Your CPA decides who gets a 1099. You just make sure the information is ready when they ask.
This guide covers what changed for 2026, what to gather, and a simple year-end routine for single-family rentals, land-owned homes, owner-financed homes, and mobile-home and RV parks. It is general information, not tax or legal advice.
What changed for payments made in 2026
The reporting threshold went up. According to the IRS, for payments made in 2026, Form 1099-NEC generally applies when a business pays someone who is not an employee $2,000 or more during the year for services, including parts and materials. For payments made before 2026, the threshold was $600. The IRS says the $2,000 amount will be adjusted for inflation starting in 2027.
That change means fewer of your smaller vendors may need a 1099 this time. You still need accurate totals to know who crossed the line, and a vendor who was under $600 last year could be over $2,000 this year after one big repair.
A few other points from the IRS instructions are worth knowing:
- Due date. Form 1099-NEC is due to the IRS and to the recipient by January 31. When that date falls on a weekend or legal holiday, the due date moves to the next business day.
- Trade or business only. The IRS says 1099-MISC and 1099-NEC reporting applies to payments made in the course of a trade or business. Whether your rental activity counts is a question for your CPA.
- Corporations. Payments to corporations are generally not reported on these forms, with some exceptions. Payments to attorneys are one of them.
- Card and app payments. Payments made by credit card, debit card, and certain third-party payment networks are reported on Form 1099-K by the payment company, not on Form 1099-NEC.
- Backup withholding. If you withheld federal income tax under the backup withholding rules, the IRS says you must file a 1099-NEC for that payee no matter the amount.
- E-filing. The IRS says that if you have 10 or more information returns, you must file them electronically.
Rules like these change, and they have exceptions. Read the current IRS instructions or ask your CPA before you decide anything about a specific vendor.
Why rental owners fall behind on vendor paperwork
Most rental vendor relationships start with a phone call on a bad day. A water heater fails, someone comes out, you pay them, and nobody asks for a W-9. Multiply that by a few properties and twelve months, and the gaps add up:
- Vendors paid by check, Zelle, card, and cash, all in different places
- One-time handymen with only a first name and a phone number in your contacts
- Invoices saved in email, texts, and a folder on someone’s phone
- A vendor who changed business names or switched from an individual to an LLC mid-year
- Work at a mobile-home or RV park split between park expenses and individual lots
None of this is unusual. It just takes longer to sort out in January than it does in November.
A year-end vendor paperwork checklist
Here is a routine you can run in November and early December. It works whether you have two rentals or a full park.
1. Pull a list of everyone you paid this year
Start with your bank and accounting records, not your memory. List every vendor paid from January 1 through today for each property. Include contractors, handymen, lawn and pest services, cleaners, and anyone else who did work. Note the payment method for each payment (check, ACH, Zelle, card, cash).
2. Match a current W-9 to each vendor
Form W-9 is the IRS form a payee uses to give you their correct name, tax classification, and taxpayer identification number. For each vendor on your list, check:
- Do you have a W-9 on file?
- Is the legal name on the W-9 the same name you’ve been paying?
- Is the tax classification filled in (individual, LLC, corporation, and so on)?
- Is the address current?
Send a short, polite request to anyone missing. A sample message: “Hi, we’re updating our vendor records before year-end. Could you send a completed W-9 to this email by December 1? Thanks for your help this year.”
3. Total payments by vendor
Add up what you paid each vendor in 2026. Keep card and payment-app payments in a separate column, since those may be reported a different way. Flag every vendor whose non-card total is near or over $2,000 so your CPA can review them first.
4. Collect missing invoices
Your CPA may want to see what each payment was for. Match each payment to an invoice or receipt, and note the property address. This also helps with your own year-end expense review.
5. Hand your CPA one clean file
Give your CPA a single spreadsheet or report with vendor name, W-9 status, total paid, payment method, and properties served. Let them decide which forms to file and how.
6. Fix the process for next year
Make a W-9 part of vendor setup. No first payment until the W-9 is on file, except in a true emergency, and then collect it within the week.
A hypothetical example
Hypothetical, for illustration only. An owner has three single-family rentals in Texas. In November, the owner pulls the year’s payments and finds 14 vendors. Nine have W-9s on file. Two were paid only by card. Three are missing paperwork, and one of those received about $2,400 for a roof repair paid by check. The owner sends W-9 requests that week, flags the roofer for the CPA, and has the file ready by mid-December instead of scrambling in late January.
Limitations and alternatives
- Your CPA makes the call. A checklist gets the information ready. It does not decide whether a 1099 is required, which form to use, or how to file.
- Accounting software helps, but only with good data. Many tools can track vendor totals and 1099 status. They still need complete payment records and W-9s.
- Some vendors won’t respond quickly. Start early, keep a record of each request, and ask your CPA what to do if a vendor never sends a W-9.
- Do it yourself or get help. If you have a few rentals and one or two vendors, a spreadsheet may be enough. With more doors or a park, the follow-up is where the time goes.
Where virtual administrative support fits
VREMCO, the Virtual Real Estate Machine, provides billing entry and invoice processing and vendor coordination as an extension of your team. For year-end vendor paperwork, that can mean requesting and tracking W-9s, logging invoices by property, keeping vendor totals current, and preparing the file you give your CPA. You and your CPA make the tax decisions. VREMCO does the administrative work under your direction and does not give tax advice.
Founded in 2020, VREMCO supports 100+ units across Texas, backed by 35+ years of combined real estate and operational experience across the ownership and leadership team. There’s no long-term contract.
Frequently asked questions
More answers about how VREMCO works are on the VREMCO FAQ page.
What is the 1099-NEC threshold for 2026?
The IRS says the threshold is $2,000 for payments made in 2026. For payments made before 2026, it was $600.
When is Form 1099-NEC due?
January 31, to both the IRS and the recipient. If that date falls on a weekend or legal holiday, it moves to the next business day.
Do I need a W-9 from every vendor?
Collecting a W-9 at setup is a common best practice, because it gives you the vendor’s correct name and tax ID before you need it. Ask your CPA which vendors you are required to report.
Do payments by card or payment app go on a 1099-NEC?
The IRS says payments made by credit card, debit card, and certain third-party payment networks are reported on Form 1099-K by the payment company, not on Form 1099-NEC.
Can VREMCO file my 1099s?
VREMCO handles the administrative side, such as collecting W-9s, tracking invoices, and preparing vendor totals. Filing decisions stay with you and your CPA.
The bottom line
Collect W-9s, total your vendor payments, and give your CPA a clean list before the holidays. January goes a lot smoother when that work is already done.
If you’d like help keeping vendor records and invoices organized across your portfolio, contact the VREMCO team, call 713-360-0789, or email support@vrem.co.
This article is general information about vendor recordkeeping and is not tax or legal advice. Consult your CPA or tax professional about your situation.