Those few people posted the 1099 questions over and over here made of lot of people confused, expecially new landlords.
As my orignial post indicated it does not need to issue 1099 at all. Why you are still insisting it is a good idea to do so. Wrong is wrong!!!
Do not repeat this kind of posting again please. I spent at least 5 hours to figure it out from searching the internet and IRS web site (after reading the information from this forum).
Can someone put the PDF link on the top of the forum for the new landlords.
http://www.gpo.gov/fdsys/pkg/PLAW-112publ9/pdf/PLAW-112publ9.pdf