Issue W9 for work < $600?

[Bryce Y.]

Hello guys,

I will be hiring a handyman for some small work. The total job should be well under $600. Should I still issue a W9? If all goes well I will most likely be giving him more work this year.

Also, what if the contractor lies on his W9 and gives a fake SSN or something? Will I still be able to deduct whatever I paid him?

If total work is less than $600 for the year, this means I can legally deduct these expenses without sending a 1099 right?

My understanding is that you don’t need to 1099 corporations. I got an inspection done for $750. Do I need to call them and ask? If they say they are incorporated, how can I verify this? Also, this inspection was done prior to closing on my first property, so can I still deduct this expense since at the time I wasn't officially in the RE business?

Thanks!

[J Scott]

If there's any chance you'll be paying more than $600, get a W9 to be safe (it's good practice to always get one).

If he lies on the W9 and signs it, that's his problem, not yours. You can still take the deduction...in fact, you could take the deduction either way, but as long as you have a W9, you'll be able to submit a 1099 and protect yourself if you get audited.