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Do I need to send 1099's?

8 posts by 4 users

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Dan Inc

Real Estate Investor from Charlotte, North Carolina

Jan 28 '09, 09:53 PM


I've paid a lot of contractors for work on my rehab. I am supposed to be sending 1099's?


Edited Jun 26 2010, 07:06


Mark Yuschak

Real Estate Investor from Grand Blanc, Michigan

Jan 28 '09, 10:22 PM


Was it an independant contractor that worked for you, or was it a company you hired? If it was a company you hired, you don't 1099 that entity.

However, if the contractor was working for "cash under the table", then yes, you need to 1099 him/her if you paid him/her more than $600.

The IRS site has tons of information about 1099s. Here's a good starting place:
http://www.irs.gov/businesses/small/article/0,,id=99921,00.html


Edited Jun 26 2010, 07:06


Account Closed

Manhattan, New York

Jan 28 '09, 10:24 PM


I will pass along the advice my attorney gave us...

If they are any kind of disregarded entity send them a 1099. This means we send 1099's to all independent contractors who use their SS# as their tax id number whether they be sole prop, LLC, LLP, LP or just straight partnerships.

For corporations with separate tax ids, we do not send 1099s.

On LLCs with separate tax ids, a judgment call is made. Unless it is obvious they are not just a pass through entity, we send 1099s.


Edited Jun 26 2010, 07:06


Dan Inc

Real Estate Investor from Charlotte, North Carolina

Jan 28 '09, 10:28 PM


Thanks, I will review this. I am a bit overwhelmed since it is now the end of Jan and I don't even know how to send a 1099.


Edited Jun 26 2010, 07:06


Account Closed

Manhattan, New York

Jan 28 '09, 10:41 PM


The fastest way, is to buy the 1099 package from Staples, OfficeMax, OfficeDepot etc.

If you use QuickBooks it can fill them out for you with just a few clicks of the mouse.


Edited Jun 26 2010, 07:06


Account Closed

Manhattan, New York

Jan 28 '09, 10:43 PM


Oh, BTW, they have to be delivered or postmarked by 1/31. Yep, this Saturday.


Edited Jun 26 2010, 07:06


Account Closed

Manhattan, New York

Jan 28 '09, 10:47 PM


Oh, and I forgot to add to the list of those getting 1099s from us. Any attorney, regardless of entity, gets a 1099 if they did work for our business.

Work done for us personally by the lawyer types, like wills, etc, do not get 1099s.

AND...

You only send 1099s for services. If you also buy goods from an IC, you do not include the goods costs.


Edited Jun 26 2010, 07:06 by Account Closed


J Scott Moderator Donor

Real Estate Investor from Ellicott City, Maryland

Jan 31 '09, 06:18 AM


Originally posted by Taz:
Oh, BTW, they have to be delivered or postmarked by 1/31. Yep, this Saturday.

I believe it's actually Monday, Feb 2 this year...



Edited Jun 26 2010, 07:07


Medium_lishproplogoJ Scott, Lish Properties, LLC
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