What is a 1099-K form? Does Baselane provide me with one?

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 your tax return information detailing the gross payment amount received from a third-party payment network. Payment networks are required to provide a copy of the 1099-K to you and 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.

• 2024 tax year: TBD by the IRS

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 that allows 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 who 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.

Please note: For the 2024 tax year, you might need to provide additional documents for your entity's rent collection (such as documents confirming the entity’s legal name, legal address, SSN, or EIN).

To provide the required documents, log into your Baselane profile and click on “Complete requirements” next to the entity’s name. The deadline to provide these documents is December 31st, 2024. We will send you a link to download a copy of your 1099-K form in February 2025.

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. 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 or mail a paper copy if you prefer.