Issuing 1099's
I have been told that as a landlord, for tenants that owe money for rent / damages per a written contract, if I do not receive monies I may issue the tenant a 1099 for that amount. By forgiving the debt they owe, I am creating taxable income for them. So If I forgive the $1000 debt they owe me, and which I will probably never see, they will have to pay Uncle Sam, or else the IRS will be after them.
Has any one else ever used this?
How long do you try to collect the money before giving up and just issuing a 1099?
How successful are Collection Agencies?
[ Edited by 64Ford on Date 09/02/2003 ]
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