3

I collect rent on behalf of a client, deduct a management fee, then send the remaining rent to the client.

One client's residential property is leased by a company who is a "master tenant." This company holds a master lease with my client and sub-leases the residential property to sub-tenants.

The master tenant is asking for my company's form W-9. The money this company sends me is not my income - only a portion of it is. Furthermore, I provide a 1099-MISC to my client for rent disbursed to them, so it wouldn't make sense for my client to provide their W-9 to the "master tenant."

When the "master tenant" company asks for my company's form W-9, should I provide it, or is their some other form I should provide?

FWIW:

  • My company is registered as a C Corporation.
  • Here is the flow of funds: Sub-lessee > Lessee > My Company > Property Owner
2

The master tenant wants your information using the W-9 form because they want to document for the IRS where they are sending the money. They want to be able to prove their expenses. They can't see inside your company, and don't need to.

They know that they send you $x per month, and want to be able to prove the expenses. So they will include your corporate tax information as part of their tax return. they will be sending you a 1099.

The IRS will then look at your corporate tax information, and expect to be able to see that your are claiming all the income that others are reporting. They will also expect that you will have expenses that you will document via your tax return. Where the 1099s you issue will point to your clients.

The money this company sends me is not my income - only a portion of it is.

All the money you are sent is your income, the part that remains after your expenses is your profit.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.