Next step is to send 1099-MISC forms to whoever you paid more than $600 in the subject year. You may have received an invoice, but if the entity is a simple LLC (not S corp), you would still need to give them 1099-MISC by January 31st.
In order to file 1099-MISC, you should get from them a W-9 form stating their personal information and SSN/EIN, as well as a signature saying that they are subject to withholding tax. If you do not get this form when you pay them, good luck getting it later.
1099-MISC is an overwhelming form, it has carbon copies which you would need to distribute around. So better way to handle this is either a Turbotax Desktop version or using Track1099.com (as I do), to file these forms and share it with the recipients. They charge a few dollars for every form and if the recipient does not confirm receipt by email, you can also pay a little more to have them mailed. For housekeepers, you will need to put the amount you paid in Box 1.
As most homeowners aren’t, I am also not a real estate professional
To qualify as a ‘Professional’ for tax purposes, a taxpayer, or their spouse, must meet a two-part test: (1) the taxpayer must spend the majority of his or her time in real property businesses, and (2) the taxpayer must spend 750 hours or more in the real property business and rentals in which he or she materially participates.
So we will report the income as passive income in Schedule E. In such case, if you incurred losses, you cannot deduct it from your overall income but carry it over to next year to offset your profits. Schedule E is a pretty simple form, and Turbox will handle that for you when you answer the questions.