Does a business that leases equipment need to issue 1099-misc as rental payments for the lease payments it makes
?
2016 instructions for 1099 say ...
Box 1. Rents
Machine rentals (for example, renting a bulldozer to level your parking lot). If the machine rental is part of a contract that includes both the use of the machine and the operator, prorate the rental between the rent of the machine (report that in Box 1) and the operator's charge (report that as nonemployee compensation, in box 7).
Exceptions.
Some payments do not have to be reported on Form 1099-MISC, although they may be taxable to the recipient. Payments for which a Form 1099-MISC is not require include all of the following.
Generally, payments to a corporation (including a limited liability corporation (LLC) that is treated as a C or S Corporation). But see Reportable payments to corporations, later.
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