FAQ - Property Management year-end forms - 1099-INT and 1098

• You can view a video of this process from article ID 51200 How do I print or generate 1099-INT forms in Property Management? (video)
• Refer to article ID 21540 DocLink: Where can I find Year-End Procedures Guides (YEPG)? to access the Year End Procedures Guide (United States).
• If you have questions about eFiling with Aatrix, refer to article ID 21149 DocLink: Where do I go if I have questions about eFiling with Aatrix?
• To determine which forms and paper to order, refer to article ID 21923 DocLink: Which forms should I order for year-end?

Q: What kind of printer can I use to print 1098s and 1099-INTs?
A: Use a laser printer. Dot matrix printers are no longer tested or supported for use with Sage 300 Construction and Real Estate year-end forms. If you encounter issues trying to print with a dot matrix printer, you will need to use a laser printer. Refer to article ID 21540 DocLink: Where can I find the Year-End Procedures Guides (YEPG)? for more information.

1099-INT FORMS

Q: How do I print 1099-INT forms in Property Management?
A: Before you print 1099-INT forms, complete the following tasks:

• Verify the Sage 300 CRE year-end update is installed.
• Verify the current Fiscal year end date on the properties you will be processing 1099-INTs (Setup, Properties, General tab, Controls tab).
• Verify the Tax name and Tax ID are entered on the Tenant setup (Setup, Tenants, General tab, Controls tab).
• Verify the Address type selected for Send Interest Payments to on the lease is correct (Tasks, Manage Leases, Change Lease, General tab, Misc tab) and verify that the address for that address type is entered on the Tenant setup (Setup, Tenants, Address tab).
• Accrue and pay all interest for the year.
• Print the 1099 forms to plain paper and review the Status Report for errors and warnings.
• Back up your Property Management files. Refer to article ID 17256 DocLink: How do I use File Tools to back up data files?
• Enroll with Aatrix if you are not enrolled already. Refer to article ID 22034 DocLink: How do I enroll for Aatrix eFiling?

Important: You are allowed to file only once for each Federal Employer ID (FEIN) and form type.

If you will be processing multiple runs for 1099s of any type (including DIV, INT, or MISC) using the same FEIN in Accounts Payable and/or Property Management, be sure to select Yes, I use multiple 1099 data files for this (EIN) in the 1099 Setup Wizard. See article ID 23256 DocLink: How do I combine files for my Form 1099 in Accounts Payable? for detailed instructions on merging your 1099 data files.

To Generate Aatrix 1099s:

1. In Property Management, select Tasks, eFile Form 1099.
2. In the Form 1099-INT window, select whether to open a new or saved report. (This window appears only if you have a saved report.)
   • If you choose to open a saved report, select the Federal ID number and click Open. In the Open Report window, select the report you want to open and click Edit.
   • For new reports, enter the following:
     • Payer Source:
       • Select GL Prefix if you want to use the payer information listed in the GL prefix associated with the property. For example, the GL prefix that is assigned to the property may be 001-004-00. However, the fiscal entity is 001, which may have a different address.
       • Select Data Folder if you want to use the payer information listed with your company in File, Company Settings, General.
       • Note: The Payer Source selection is invisible if your fiscal entity is set to Data Folder in GL File, Company Settings, GL Settings.
     • Properties to Process: Select which properties you want to include in this run. You can select multiple properties as long as they share the same fiscal entity and the year in the Period End column is the same. (Tip: Scroll to the right to view this column in the grid.) The date in this column is the current period on the property (PM Setup, Properties, General tab, Controls tab).
       Tip: Use SHIFT to select a range of properties and use CTRL to select specific properties.
     • Reporting Year: Select the correct year from the drop-down list. You can run 1099s for the current or previous year.
     • Federal ID Number: Enter the FEIN you want to use when filing the 1099 or accept the prefilled number. The prefilled FEIN is retrieved from the fiscal entity you set up.
       • If your fiscal entity is set to Data folder the FEIN is located in GL File, Company Settings, GL Settings.
       • If your fiscal entity is set to Prefix, the FEIN is located in GL Setup, Prefix/Base, [prefix A, prefix B, or prefix C], Fiscal Settings.
     • Minimum Reporting Amount: Enter the minimum reporting amount. Leases with interest that are equal to or exceeds this amount will be included in the report.
     • Foreign Entity: You will not be able to process 1099s using Aatrix if you select Foreign Entity. This check box prefills if the Foreign Entity check box is selected in your fiscal entity:
       • If your fiscal entity is set at Data folder, this check box is located at GL File, Company Settings, GL Settings, Calendar/ Fiscal Settings.
       • If your fiscal entity is set at Prefix, the check box is located where you set up your fiscal entity in GL Setup, Prefix/Base, [prefix A, prefix B, or prefix C], Fiscal Settings.
3. Click Next.
4. Select the leases you want to include on this report in the Leases to Process window then click Next.
5. In the Generate Form 1099-INT window, click Generate.

Verify company information:

1. If you received a 1099 Company Information message, click OK.
2. Select if you want to do a test drive or No thanks, start processing my 1099/1096s then click Next.
3. Verify your Payer TIN number then click Next.
4. The Multiple Data Files window allows you to merge multiple Accounts Payable and Property Management 1099 files that need to be filed under the same EIN. Read the instructions on this window carefully, then select your answer accordingly, then click Next. If you need to merge 1099 data, refer to article ID 23256 DocLink: How do I combine files for my Form 1099 in Accounts Payable? for information on merging 1099 files.
5. Verify your company payer information then click Next.
6. Select the appropriate tax preparer type then click Next.
7. In the State & Local Tax Items window, you can assign the correct tax account number and add all state and local taxes that need to be reported on your 1099 forms. If you have already completed a federal or state tax form, the items may be already filled in.
   • Click Add to enter new tax items.
   • Click Remove to delete any taxes for states that you do not want to print 1099s.
   • Click Edit to change the items already listed.
   • Tip: The text on the window shows you the correct account number format.
   • Notes:
     • If you add any states, additional boxes will become available in the W2/1099 Preparer grid.
     • The W2/1099 Preparer grid contains a column for the filing state for each recipient. This is the state to which the 1099 will be sent, if they require them.
     • The following states require account numbers listed on the 1099 forms even if there is no withholding: LA, MT, NC, VT, and WI. The software will automatically place these state account number on the 1099 forms. Note: As of reporting year 2018, Pennsylvania (PA) and Oregon (OR) removed that requirement.
     • To have an account number populate on the form that isn't one of the above states, add taxable amounts for the state in the Preparer grid. Withholding can be left blank if there was no withholding, but the state account number will populate on the form if a taxable amount is included.
8. Click Next.
9. In the Foreign Countries or U.S. Possessions window, if any of your recipients have foreign taxes withheld, click Add to enter the countries' names. If you add any countries, boxes 6 and 7 will become available in the W2/1099 Preparer grid.
10. Click Next.
11. Select the appropriate options in the Data Verification window then click Next.
    • Note: If you will be sending any recipients their 1099 form electronically, you must obtain an e1099 Consent Form from the recipient and retain it on file. See article ID 87584 Electronic 1099 Consent Form
12. In the Recipient Identification Numbers window, select the RIN formatting options you would like to use then click Next.

Verify 1099 information and totals:

The W2/1099 Preparer window displays information in a grid. The columns in the grid correspond to the boxes on the form. Verify information highlighted for each step. Missing or incorrect information is indicated with a red cell. NOTE: Any changes you make in this grid do not correct your accounting data. You must correct the data within Property Management for the changes to be permanent.

1. In the W2/1099 Preparer window, verify the recipient Taxpayer ID (TIN) and click Next Step.
2. Verify the recipient FEIN check box and click Next Step.
3. Verify the recipients' names and addresses and click Next Step.
4. Verify the income boxes and click Next Step.
5. Verify the filing state and click Next Step.
   • If you receive the error: "One or more of the filing states require a state account number":
     1. Click Go back and correct.
     2. From the Edit menu, select Company Setup.
     3. Click Next until you reach the State & Local Tax Items window.
     4. click Add to next to the State Tax Items box.
     5. Select the State.
     6. Select the appropriate withholding Tax Name.
     7. Enter the Tax account number.
     8. Click OK.
     9. Repeat steps 4 through 8 for any additional states.
     10. Click Next.
     11. Continue to the W2/1099 Preparer window. Click Next until you are in the amounts grid.
6. If you added any states and need to report amounts in box 17, scroll to the right to enter the appropriate amounts in wages and taxes boxes for the appropriate states. The state will print in box 15 and the tax account number will print in box 16 on the form.
7. If you added any foreign countries and need to report amounts in box 6, scroll to the right to enter the appropriate amounts in boxes 7 (wages) and 6 (tax) for the appropriate countries. The country will print in box 7 on the form.
8. Click Next Step.

Print and/or eFile your forms:

1. If you receive an Aatrix eFile ad, review the information then click Next.
2. Select the applicable options for printing and/or eFiling your forms, then click Next.
3. Click Next.
4. Review the forms that will generate in the Review Data window. If you would like to print the list, click Print. Click Next.
5. Review your 1099 forms. If corrections need to be made, close the window and start over. If the forms are correct, follow the prompt at the top of the screen to print copies, then click Next Step. Repeat this step for each form you selected to print. Note: It is recommended you save your copies to a .pdf file for easy access and reprinting later.

eFile your forms using the Aatrix eFile center:

1. If you have not enrolled with Aatrix, click Enroll to launch the Aatrix eFile Center. Refer to article ID 22034 DocLink: How do I enroll for Aatrix eFiling?
   1. Click Enroll and follow the prompts to setup your account.
   2. After completing the steps to setup your account, on the Aatrix Secure eFile - EIN NOT ENROLLED window click I have Enrolled and have my Login ID.
2. If you have an account with Aatrix, the Aatrix Secure eFile - Login window will display. Enter your Username and Password and click Login.
3. Follow the prompts to complete the eFiling process. Refer to article ID 21984 DocLink: How do I use the Aatrix Efile Center website?

1098 FORMS

Q: What is a 1098 used for in Property Management?
A: 1098 Interest forms are used to report mortgage interest paid by tenants for a given calendar year. You can also print real estate taxes on this form for informational purposes.

The Property Management co-op market has the need to issue 1098 information to both their tenants (co-op shareholders) and the government. This feature produces printed 1098 forms (on pre-printed forms) which can be sent to tenants. The government can receive either the same printed forms or magnetic media.

Q: How do I print 1098-Mortgage Interest forms?
A: Before you print 1098-INT forms on preprinted forms, complete the following tasks:

• Verify the Sage 300 CRE year-end update is installed.
• Back up your Property Management files. Refer to article ID 17256 DocLink: How do I use File Tools to back up data files?
• For 1098 Interest forms to calculate correctly, make sure you enter the appropriate information in the following Property Management fields:
  • Current interest paid (Setup, Properties, General tab, Status tab).
  • Tax amount (Setup, Properties, Tax tab) for the Tax ID that matches the Federal ID/EIN and Year that matches the tax year.
  • Unit shares (Setup, Units, General tab, Class/Address/Rent tab).
  • Do not print 1098 form check box (Tasks, Manage Leases, Change Lease, General tab, Miscellaneous tab) is selected on the leases that should NOT receive a form 1098.
  • Verify the Tax name and Tax ID are entered on the Tenant setup (Setup, Tenants, General tab, Controls tab). If you need the Account Number to print on the form, enter it in the Account Number field on this tab.
  • Verify the Address type selected for Send Interest Payments to on the lease is correct (Tasks, Manage Leases, Change Lease, General tab, Misc tab) and verify that the address for that address type is entered on the Tenant setup (Setup, Tenants, Address tab).
• Make sure you enter the appropriate information in the following General Ledger fields:
  • Address, City, St, ZIP, and Phone on the GL prefix (GL Setup, Prefix/Base, [fiscal entity prefix]).
  • Federal ID in Fiscal Settings (GL Setup, Prefix/Base, [fiscal entity prefix], Fiscal Settings).
• Print the 1098 forms to plain paper and review the Status Report for errors and warnings.

IMPORTANT: The IRS 1098 mortgage interest form changed significantly for reporting years 2016, 2017, and 2018.

• For reporting year 2016, Property Management only populates box 1 Mortgage interest received from payer(s)/borrower(s) and box 10 Other for real estate taxes.
• For reporting year 2017, Property Management only populates box 1 Mortgage interest received from payer(s)/borrower(s) and box 11 Other for real estate taxes.
• Beginning with reporting year 2018, Property Management only populates box 1 Mortgage interest received from payer(s)/borrower(s) and box 10 Other for real estate taxes.
• Verify with your accountant regarding the additional boxes that may be required. These will have to be manually filled in.

To generate 1098s:

1. In Property Management, from the Reports menu, select Forms, 1098-Mortgage Interest.
2. Click Next.
3. Select the source of the recipient name and address, GL Prefix or Data folder/Manual entry, then click Next.
   • If GL Prefix is selected, the information is retrieved from GL Setup, Prefix/Base, [prefix A, prefix B, or prefix C], Fiscal Settings.
   • If Data folder/Manual entry is selected, the information is retrieved from File, Company Settings, General, but you will need to enter the Federal ID.
4. Select the properties to include. Hold down the CTRL key to select multiple properties then click Next.
5. If you selected Data folder/Manual entry in step 3, review or enter the information in the Recipient Name and Address window then click Next.
6. Select the reporting year then click Next.
   • Note: The data you have entered in the fields (Current interest paid, Tax amount, and Unit Shares) must be for the reporting year. If you select the prior year, the data entered in these fields must be for that year.
7. Enter the minimum reporting amount then click Next.
8. Select No, this is the first time processing 1098 Interest for the year then click Next.
   • Note: If you have already printed and filed the 1098s and need to make a correction, you will select Yes, this is a corrected form.
9. Magnetic Media selection:
   • If you want to create magnetic media to send to the IRS in addition to printing the 1098 forms, select Yes, produce magnetic media, then steps 9-11 in the 1098 Interest Forms wizard become available and must be completed:
     1. Select if you are reporting for the prior year or the current year then click Next.
     2. Complete the Transmitter Information for the magnetic media file then click Next.
     3. Complete the Contact Information then click Next.
     4. Complete the Company Return Information then click Next.
   • If you only want to print the 1098s, select No, only print 1098 Interest forms then click Next.
10. Review the summary information. If you need to make corrections, click Back to go back to the appropriate windows to correct then proceed forward as normal. When the summary information is correct, then click Finish.
11. If you selected to create the magnetic media file, you will be prompted to choose the location to save the IRSTAX file. Select the location in Save In, then click Save.
12. In the 1098-Mortgage Interest - Print Selection window:
    • Select 1098 Interest Forms, then click Printer Setup to choose the printer to print the forms to or mark Print to File to save to a print file then click OK.
      • TIP: Save the form to a print file or PDF file. Then open the file and print to the printer with the forms. You may want to print one or two forms first to test the alignment. Keep the final print file/PDF file for historical reporting and/or to make reprinting easier.
    • Select Status report, then click Printer Setup to choose the printer to print the report to or mark Print to File to save to a print file then click OK.
13. Click Start.
14. When completed, review your forms and the Status report.

Additional information is also available in the Year-End Procedures Guide and in Property Management Help Topics.

Q: How are amounts on 1098-Mortgage Interest forms calculated in Property Management?
A: The Mortgage Interest amount in Box 1 is calculated as follows:
Current Interest Paid * ((Unit Shares * Number of Days Lease Occupied) / Weight Factor)

The Real Estate Tax amount in Box 10 for 2016 and beginning with 2018, or Box 11 for 2017, is calculated as follows:
Tax Amount * ((Unit Shares * Number of Days Lease Occupied) / Weight Factor)

Explanation of values:

• Unit Shares are entered for the unit (Setup, Units). You may want to enter a value that is less than the actual number of unit shares if multiple leases occupy the same unit during the same time period.
• Number of Days the Lease was Occupied is calculated by using the actual move-in and move-out dates on the lease. For the reporting year, if the move-in date is after the calendar year ends or if the move-out date is before the calendar year begins, the lease will not process. Otherwise, the days occupied in the reporting year are counted. The unit is not considered occupied on the move-out date.
• Weight Factor calculates (Unit Shares * Number of Days the Lease was Occupied) for each unit and sums that figure for all units on a property.
  • For example: ((Unit_1 Shares * Total Days Unit_1 Occupied) + (Unit_2 Shares * Total Days Unit_2 Occupied) + .......... + (Last_Unit Shares * Total Days Last_Unit Occupied))

Note: The "total days the unit was occupied" is the number of days each unit was occupied in the reporting year. This figure needs to include all other leases that occupied this unit for the reporting year.