Glossary · DealProp
1099-NEC
The IRS form a landlord files reporting payments of $600 or more to a vendor over the course of a calendar year. Required by law. Painful if you skip it.
A 1099-NEC is the IRS form a U.S. landlord (or any business) uses to report payments of $600 or more made to a non-employee vendor — typically an independent contractor like a plumber, electrician, painter, or handyman — over the course of a calendar year. The vendor gets a copy by January 31st. The IRS gets a copy by the same date. The amounts are aggregate, not per-transaction.
The "NEC" stands for Nonemployee Compensation. The form replaced 1099-MISC for non-employee payments in 2020 and has been the right form for vendor payments since.
Why it matters
The IRS uses 1099-NEC data to cross-check vendor income reporting. If you paid a vendor $4,200 across the year and did not file a 1099-NEC, the IRS may eventually find out (often through the vendor's audit, or the vendor's failure to report, or randomly via your audit). Penalties vary from modest to significant depending on how late the filing is, whether it was intentional, and whether the vendor reported the income.
For the landlord, the meaningful detail is tracking the threshold across the year. A $200 plumbing repair in February is below the threshold. A $250 second repair in May is still below. A $350 third repair in August puts you over $600 for the year on that vendor, and you owe them a 1099-NEC the following January. If you have not been tracking, January gets ugly.
The other half of the burden is collecting the vendor's W-9 (their tax info) before you pay them. Vendors who never give you a W-9 still get a 1099-NEC; you just have to fill it in with what you have and the IRS deals with the rest.
In DealProp
DealProp tracks vendor payments across the calendar year and flags vendors who cross the $600 threshold the moment they do. W-9 capture is built into vendor onboarding. By December 31st, every reportable vendor is queued for a pre-filled 1099-NEC. You review, you file (electronically or via your CPA), and you move on. See books & reports for the full year-end workflow.