This presentation covers how to complete 1099's in AppFolio.

1. 1 2015 © AppFolio, Inc. Confidential.
AppFolio 2015
1099 Webinar
December 15, 2015

2. 2 2015 © AppFolio, Inc. Confidential.
Presentation Details
Team: Arezou Gholami, Breigh Cavender, Taimoor Khan,
Katie Rudolph, Todd Smith
Duration: ~1 Hour
Recording: Webinar is Recorded, You will Receive Link
Follow-Up: Email will be Sent within 48 Hours

3. 3 2015 © AppFolio, Inc. Confidential.
Agenda
• What’s New With 1099s for 2015
• Answer Common 1099 Questions
• Discuss Steps to Generate 1099s
• Demonstrate Generating 1099s

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Ask Questions….Please :-)
Send Your
Questions in the
“Questions” Section
of the GoToWebinar
Panel on the Right
Side of the Desktop

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FAQ’s
Is this being recorded, can I access this information later?
• Yes. It is being recorded and you will receive a follow-up email with a link to
the recording and presentation within two days
• You can also access information in the online Help Resource Center

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How Familiar are You with AppFolio's 1099
Process?
• Familiar: Have previously completed 1099s in AppFolio
• Partially: Attended last month's Webinar and read help site
• Not Familiar: Have never completed 1099s or read help site
Polling Feedback

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What’s New With 1099s?

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What’s New?
• New Page Design
o Clear instructions
o Break process into logical steps
o Includes new functionality

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What’s New?
• Don’t see this yet?
• Some may still see the original page
design and buttons
• Everyone will have the new page
this week!
• Some attendees may already see the
new page design and buttons

10. 10 2015 © AppFolio, Inc. Confidential.
What’s New?
• Share 1099-MISC Copy B to Owner
Portals
o Publish owners’ 1099-MISC Copy B to
their owner portals
o Owners must have email address to
access their portal and shared 1099
• Print 1099-MISC Copy B for recipients
o Print one 1099 to a page from AppFolio
o No pre-printed forms necessary, can
use blank paper

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1099 FAQs

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How Do I Know If My Data is Accurate?
• Before generating 1099’s, PLEASE take
the time to verify and complete the
necessary information.
• Specific reports to verify and complete all
tax - related information. Covered in End-
of- Year Preparation Webinar.
• If you did not attend, review the Webinar
recording and slides at AppFolio.com/blog.
o Search “2015 AppFolio End of Year
Preparation”

13. 13 2015 © AppFolio, Inc. Confidential.
Do I Need to Purchase 1099 Forms?
• Must purchase 1099-MISC Copy A (for IRS) if
submitting paper 1099s to the IRS
• Purchase Copy C (Payer) depending on your state’s
requirements
• Purchase preprinted 1099-MISC with two forms
per page
• Found at most office supply stores (AppFolio does
not provide Copy A)
• AppFolio does not support 1096, 1042 etc… Only
1099-MISC
• If submitting 250 or more total 1099s, IRS requires
e-filing Copy A’s through FIRE System

14. 14 2015 © AppFolio, Inc. Confidential.
Can I Print & Generate Electronic 1099s?
YES!
• Print and electronically send
1099-MISC Copy B for
recipients
• Download electronic FIRE file to
e-file 1099s
• Print 1099-MISC Copy A (for the
IRS) using purchased,
preprinted forms

15. 15 2015 © AppFolio, Inc. Confidential.
Can I Adjust Printer Settings?
YES!
• 1099 Printer Settings task on 1099s
page (right side task pane)
• Can enter Left and Top offset to adjust
alignment of printed text
• Print test 1099s on blank paper (avoid
wasting preprinted forms)
• Be sure page scaling is turned off in
your PDF reader

16. 16 2015 © AppFolio, Inc. Confidential.
What Accounts are Included in 1099 Totals?
• For Owners – All income GL accounts
not “Exempt from 1099 Reporting” and
prepaid rent
• For Vendors – All GL accounts (1099
total is sum of payments in tax year)
• To mark an account exempt,
Accounting > GL Accounts > Select the
Account
o Check or Uncheck “Exempt from
1099 Reporting”
• Access to GL accounts dependent on
user role permissions

17. 17 2015 © AppFolio, Inc. Confidential.
Who Pays Vendor 1099s?
• Can be set as the management
company, property owner, or assigned
portfolio
• Setting is found on the Property page in
the “Owners and Financials” block
• If Vendor 1099 Payer is set to property
owner or portfolio, may see multiple
1099s for some vendors

18. 18 2015 © AppFolio, Inc. Confidential.
How Do I Change 1099 Eligibility & Tax Settings?
• Company Tax Information
(General Settings > Company Settings)
o Company Phone Number
o Taxpayer Name
o Taxpayer ID
o Transmitter Control Code (for FIRE file only)
o Contact Name (for FIRE file only)
• On Owner and Vendor Records
o Taxpayer Name
o Taxpayer ID
o Send 1099? - Check if eligible recipient

19. 19 2015 © AppFolio, Inc. Confidential.
How Do I Account for Hidden Records (owners,
vendors, properties)?
• Hidden owners, vendors, and
properties will be included in 1099-
related reports and 1099 totals by
default
• Properties filter on Generate
1099s step and all 1099– related
reports should be set to Show All
Properties

20. 20 2015 © AppFolio, Inc. Confidential.
Do I Need to e-File my 1099s?
• The IRS requires anyone
submitting 250 or more 1099s to
submit them electronically through
the FIRE system
• Total of owner and vendor 1099s
combined
250 or More 1099s

21. 21 2015 © AppFolio, Inc. Confidential.
What is a Transmitter Control Code?
• Code required by the IRS to submit
1099s electronically through the FIRE
system
• Transmitter Control Code (TCC) must
be assigned by the IRS
• Application approval can take up to
six weeks so don’t wait to apply!
• Learn more at:
http://www.irs.gov/taxtopics/tc802.html
• Link to application form:
http://www.irs.gov/pub/irs-pdf/f4419.pdf

22. 22 2015 © AppFolio, Inc. Confidential.
When Do I Need to File 1099s?
• Please note state and
Federal deadlines for filing
1099s may be different
Due Date Item
February 1, 2016 Send Copy B and Copy 2 of the 1099-
MISC form to the recipient
February 29, 2016 Paper Format:
File Copy A of the 1099-MISC form with
the IRS
March 31, 2016 E-File Format:
File Copy A of the 1099-MISC form with
the IRS

23. 23 2015 © AppFolio, Inc. Confidential.
Where Do I Submit the IRS FIRE Files?
www.fire.irs.gov
• You must to create an
account to login
• You must have a
Transmitter Control Code
to upload and submit a
FIRE file

24. 24 2015 © AppFolio, Inc. Confidential.
What is a Test FIRE File?
• The IRS encourages anyone e-filing 1099s to submit a test FIRE file to ensure their hardware and
software are compatible with the IRS FIRE system
• Submit at http://fire.test.irs.gov anytime from November 2, 2015 - February 19, 2016
• Receive confirmation email back within 2 days. Add fire@irs.gov and irs.e-helpmail@irs.gov to
accepted email contacts
• E-File FAQs: https://www.irs.gov/Tax-Professionals/e-File-Providers-&-Partners/Filing-Information-
Returns-Electronically
• Note: Test FIRE system is unavailable from December 11, 2015 - January 3, 2016 for maintenance

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Can AppFolio Generate a Test FIRE File?
YES!
• You can generate a test FIRE file
from AppFolio
• See Step 5 of the 1099 workflow

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Can AppFolio Generate a Correction FIRE
File?
YES!
• You can generate correction FIRE
files for owners and vendors from
AppFolio

27. 27 2015 © AppFolio, Inc. Confidential.
For More Info: help.appfolio.com

28. 28 2015 © AppFolio, Inc. Confidential.
Who Do I Contact About Accounting Questions?
• Please contact your tax
professional.
• AppFolio provides a simple and
secure method to generate 1099s,
but we are unable to give tax
and/or accounting advice.

29. 29 2015 © AppFolio, Inc. Confidential.
1099 Steps

30. 30 2015 © AppFolio, Inc. Confidential.
Confirm Your Data is Accurate!
• Before generating 1099’s, PLEASE take
the time to verify and complete the
necessary information.
• Specific reports to verify and complete all
tax - related information. Covered in End-
of- Year Preparation Webinar.
• If you did not attend, review the Webinar
recording and slides at AppFolio.com/blog.
o Search “2015 AppFolio End of Year
Preparation”

31. 31 2015 © AppFolio, Inc. Confidential.
Generate Vendor 1099s
1. Reporting > 1099s
2. Select Vendor, correct tax year,
and ‘Send 1099’ Vendors Only
3. Click Search
4. Click Download Recipient
1099s to print Copy B for
recipients (vendors)
5. Click Download FIRE File or
Download IRS 1099s to print
Copy A (for IRS)

32. 32 2015 © AppFolio, Inc. Confidential.
Generate Owner 1099s
1. Reporting > 1099s
2. Select Owner, correct tax year,
and ‘Send 1099’ Owners Only
3. Click Search
4. Click Download Recipient
1099s to Share and Print Copy
B for recipients (owners)
5. Click Download FIRE File or
Download IRS 1099s to print
Copy A (for IRS)

33. 33 2015 © AppFolio, Inc. Confidential.
Sharing Owner 1099’s
• Owners must have an email
address to access portal and
shared 1099
• Owner must consent to receive
their 1099 electronically prior to
receiving it
• If no consent, must also print and
mail Copy B to the owner
• For more information:
https://www.irs.gov/pub/irs-pdf/i1099gi.pdf
(see page 15)

34. 34 2015 © AppFolio, Inc. Confidential.
Generate a Test FIRE file
1. Run the 1099 function
2. Filter for recipients you wish
generate a test FIRE file for
3. In Step 5, click Download Test
FIRE File
Notes:
o Encouraged by IRS to ensure system
compatibility
o Submit any time Nov 2 - Feb 19
o http://fire.test.irs.gov
o Receive email back in 2 days

35. 35 2015 © AppFolio, Inc. Confidential.
Run a Correction FIRE file
1. Reporting > 1099s
2. Filter for recipients you wish
generate a correction FIRE file for
3. Select Generate a Correction
FIRE File
4. Click Search
5. In Step 5, click Download FIRE
File (Download IRS 1099s will be
inactive)

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Demonstration

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Summary

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Agenda
1 What’s New With 1099s?
2 Answer Common 1099 Questions
3 Discuss 1099 Steps
4 Demonstrate 1099 Steps

39. 39 2015 © AppFolio, Inc. Confidential.
Polling Feedback
When do you anticipate generating 1099s?
• By End of January
• By End of February
• By End of March
• Not Sure Yet

40. 40 2015 © AppFolio, Inc. Confidential.
Tips for Success
• Start Early: Do not wait until 1099s are due to begin the
process – reduce stress and likelihood of error.
• Expect it to Take Longer Than Planned: Give yourself some
cushion to complete tasks, a good rule is to estimate it will take
20% longer than planned.
• Set Aside Dedicated Time: Do not try to manage 1099s while
also trying to handle other responsibilities. You may get
distracted and increase the chance of errors.
• Send “draft” reports: Send owners and vendors “draft”
versions of reports to review for any issues, questions or
concerns to avoid last minute changes during 1099 reporting.

41. 41 2015 © AppFolio, Inc. Confidential.
Action Checklist
Action 
Start Now – Don’t Wait, Time Flies! ☐
Verify and Clean Up Data Before Generating final 1099s! ☐
Run, Print, Mail, and Share Owner 1099s (Monday, February 2nd) ☐
Run, Print, and Mail Vendor 1099s (Monday, February 2nd) ☐
Run, Print and Send 1099s to IRS
• Run, Print and Mail IRS 1099s - (Monday, March 2nd - Paper)
• Run and Submit IRS FIRE File - (Tuesday, March 31st – e-file)
☐
Take a Break, You Earned It! ☐

42. 42 2015 © AppFolio, Inc. Confidential.
More Info
Help & Training Link
Top Right of Page
1. Access Help
2. Visit Forums
3. Submit Support Request
4. Make a Suggestion

43. 43 2015 © AppFolio, Inc. Confidential.
Thank You