Appfolio 1099 Tax Preparaton

November is a very busy month for PM Bookkeeper. We begin our preparations for year end. One of the most important items to tackle early on is 1099’s! Below is some very important information. We will be sending out additional updates throughout the next couple of months with how we do taxes!

Appfolio prepares 1099s for both vendors and owners. Some owners and some vendors you will not need to send a Form B. Please check IRS code (https://www.irs.gov/pub/irs-pdf/i1099gi.pdf) regarding you should receive and who should not receive 1099’s.

If you need to purchase printable 1099s, we would recommend this link

AppFolio offers the ability to print 1099s for recipients (Copy B). If you are submitting paper 1099s to the IRS, you must purchase pre-printed forms in order to print 1099-MISC copy A from AppFolio. If you are e-filing 1099s, AppFolio can generate a compatible FIRE file to submit online to the IRS.

The 1099-MISC Copy B you can print from AppFolio is the same as the form you can purchase from the IRS and prints one form to a page. Filter the 1099 function for one vendor or owner to print a sample. This has no affect on data in your system – the 1099s won’t save anywhere and nothing is recorded on vendor pages.

You’re required to e-file 1099s if you’re filing 250 or more 1099s (owners and vendors combined). If you’re filing less than 250, you can submit paper 1099s or e-file. In order to e-file, you must apply for a Transmitter Control Code and create an account in the IRS’s FIRE system. See E-Filing 1099s for more detailed information.

Owners must provide consent if you’re ONLY sending them an electronic 1099. You do not need consent if you’re sending them an electronic and paper 1099. See Collect & Record Owner Electronic 1099 Consent for more information and instructions for how to gather consent in AppFolio.

Mid-Year Go Lives, Financial Remigrations or Tax ID Changes

If I have not been live with AppFolio for the entire year, can I still produce 1099s through AppFolio?

For owners, if you included year to date totals for your income GL accounts during your data migration, then you can produce 1099s from AppFolio. If not, you will need to produce 1099s from your old solution and AppFolio, or enter journal entries in AppFolio to reflect balances in GL accounts for the missing months.

For vendors, if the taxpayer is the management company for all properties, make sure there is a 1099 Balance Forward entered on the vendor’s page. If the taxpayer on properties is set as the Property Owner or Portfolio, you’ll need to generate 1099s from AppFolio and your old solution.

We changed our tax ID this year. Can we generate 1099s from AppFolio?

If your company changed its tax ID number mid-year, you’ll need to complete 1099s manually for the current year. All financial activity under the old tax ID will remain in your database under the new tax ID. AppFolio does not have a ‘cut off’ point for 1099s, or start and end dates for tax IDs. To report 1099 totals, AppFolio looks at the total operating income for the year and reports it under whatever tax information is recorded in Company Settings at that time. You can run reports like the Cash Flow to get accurate totals for both time periods, but must complete the 1099s manually.

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