Posted by Laure on January 15, 2000 at 24:07:04:
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Do I need to send my contractor a 1099? - Posted by Andrea
Posted by Andrea on January 14, 2000 at 12:34:57:
Hi everyone-
I recently completed my first rehab deal and I am starting to think about taxes for this year. I was curoius as to what I am supposed to do with my contractors. For example, I had a painter come in and paint the inside of the house for $800, for which I have an invoice and a canceled check. I sold the place for a profit, but I want to add the improvements the contractors did to my basis. Do I need to send all of the contractors a 1099? Any advice would be greatly appreciated.
Thank You,
Andrea
Re: Do I need to send my contractor a 1099? - Posted by The Baze
Posted by The Baze on January 14, 2000 at 20:33:39:
1099s need to be sent to all unincorporated taxpayers that performed services for you and were compensated more than $600.
Tom Bazley
Maybe not - Posted by Dave T
Posted by Dave T on January 14, 2000 at 16:32:48:
In my opinion, no 1099 is needed if your rehab work was done by independent, licensed contractors. You got invoiced for the work completed and you have cancelled checks as your proof of payment. You have all the documentation you need to support your adjusted basis.
If, however, you had the work done by a “laborer” whom you paid in cash without the benefit of a contract, then the worker might be considered your employee. You will need to issue a 1099-MISC to each “1099 employee” for the amount(s) you actually paid during the year.
Consult your accountant for specific details relevant to your circumstances.
Re: Do I need to send my contractor a 1099? - Posted by Bill Taylor
Posted by Bill Taylor on January 14, 2000 at 14:43:14:
Sure do! Anyone you paid over $600 in the calendar year will need to be awarded a 1099. In addition to that if they were not covered by workers comp and you do not have the policy number you will also be entitled to pay that too. If you did not have a policy you were probably pretty lucky if noone got hurt. make sure to hire contractors with the insurance and get a copy of their policy unless you want to take the risk. It also is a law in my state that you have to have coverage.