I switched from sole proprietor to S Corp last year and was confused when my 1099s suddenly dried up! I asked one client about it and they basically laughed and said "that's one of the perks of having a corporation - we don't have to send you forms anymore." Their accounting department explained it saves them a ton of work at year end. But it definitely threw me off at first when trying to do my taxes.

This is a great question that confused me too when I first incorporated! The key thing to understand is that companies can still claim the full business deduction for payments made to your S Corp without issuing a 1099 - they just need to maintain proper internal records like invoices, contracts, and proof of payment. From their perspective, not having to issue 1099s to corporations (including S Corps) is purely an administrative benefit. It reduces their year-end paperwork burden, eliminates potential filing errors, and saves time on tax compliance. The IRS created this exemption specifically because corporations have more structured reporting requirements than sole proprietors. Just make sure you're keeping detailed records of all income on your end since you won't have those 1099s as backup documentation. Your bank statements, invoices, and contracts become even more important for proving income to the IRS if you're ever audited.

Has anyone used TurboTax to prepare their S-Corp return with K-1? I'm in the same boat as OP and wondering if the software walks you through this properly or if I should use something else?

Just wanted to add my experience as someone who went through this exact situation last year. The key thing to remember is that even though you had no revenue/expenses, you still need to properly complete the K-1 because it establishes important records for future years. A few specific tips for your zero-activity K-1: - Box 1 (Ordinary business income/loss): Enter "0" not blank - Box 16 (Foreign transactions): Enter "N/A" if no foreign activity - Make sure to include your beginning and ending capital account balances Also, keep detailed records of any startup costs you personally paid for - these might not affect this year's return but could be important for future deductions. The IRS likes to see consistency in how S-Corps report, even in dormant years. Good luck with your first S-Corp filing! The learning curve is steep but gets easier each year.

Has anyone else noticed that the K-1 equivalent info from DST investments sometimes doesn't match up with the 1099-MISC? My DST sponsor sends a "Tax Information Statement" that shows different amounts than what's on my 1099. Confused about which numbers to use on my Schedule E.

Just wanted to add my experience with DST passive losses since I see a lot of confusion here. I've been invested in DSTs for about 4 years now and initially made the mistake of not properly tracking my suspended passive losses year over year. The key thing to understand is that these losses accumulate on Form 8582 if you don't have other passive income to offset them against. I learned this when I finally sold one of my DST interests and suddenly had a huge passive loss carryforward that I could finally use - it saved me thousands in taxes on the gain from the sale. Make sure you're keeping detailed records of your annual passive losses from each DST investment. When you eventually dispose of a DST interest (whether through sale or exchange), all those accumulated losses become deductible against any type of income, not just passive income. It's actually a pretty powerful tax planning tool once you understand how it works over the long term. Also, don't forget that if you do a 1031 exchange from your DST into another investment, the passive losses stay with you and continue to accumulate. Only an actual taxable sale triggers the release of all those suspended losses.

I've encountered this a couple times with older small business owners who are still doing everything manually. While it's technically valid if all required fields are present and legible, I always recommend having the client contact the employer to request a properly printed version if possible. It just looks more professional and reduces the chance of processing delays or questions from the IRS. If they can't provide a printed copy, make sure to keep extra documentation of the client's actual payments received to back up those numbers.

I'd recommend treating this as a yellow flag rather than an immediate red flag. While handwritten 1099-NECs are uncommon, they're not automatically invalid. The key things to verify are: 1) All required fields are complete and legible, 2) The EIN matches IRS records, 3) Your client's records support the reported amounts. Construction companies, especially smaller family-owned ones, sometimes lag behind on technology adoption. That said, I'd definitely document everything thoroughly and consider having your client request a printed copy for their records. If the employer refuses or the numbers don't add up, that's when I'd be more concerned about potential issues.

One thing that hasn't been mentioned yet - if you're having trouble getting clear answers from your broker or the settlement company, you can also check your MLS system or transaction management platform. Many brokerages use systems like DocuSign, SkySlope, or dotloop that keep detailed records of who received what payments and when. I'd also suggest reaching out to other agents in your office who've been through this before. Most experienced agents are happy to help newcomers navigate the tax reporting confusion. And if your broker is being vague, try talking to the office manager or transaction coordinator - they usually handle the administrative side and might have better answers about who issues the 1099s. Don't panic though - as others mentioned, even if you never receive the forms, you can still file your taxes correctly with your settlement statements and commission records. The key is just making sure you report all the income, regardless of what paperwork you do or don't receive.

Adding to what others have said about tracking expenses - don't forget about your business license fees and any association dues you paid! Even if you only closed one deal, you likely had to pay for your real estate license renewal, NAR dues, and local board fees. These are all legitimate business deductions. Also, if you drove to showings, open houses, or client meetings (even if they didn't result in sales), keep track of that mileage. The IRS standard mileage rate for 2024 was 67 cents per mile for business use. Even as a new agent, those miles can add up quickly! One more tip - if you're planning to continue in real estate for 2025, consider getting a business credit card to keep all your real estate expenses separate. Makes tax time SO much easier when everything is clearly separated from your personal expenses. Good luck with your taxes!