Updated over 4 years ago on . Most recent reply
Paying Contractor Question
I recently purchased my first rental property and closed on February 27th. My friend and I spent about a total of 15-20 hours at the property getting it ready by installing and fixing some things to help make it as maintenance free as possible for awhile. He is the head property maintenance guy for over 600 units and said he doesn't mind being my maintenance guy for this property. I told him to write me up an invoice for the materials he ordered and labor. So he did but is trying to only charge me for the materials which came out to around $250. He put in a good amount of hours and I want to pay him at least $500 for the labor he did. My question is since this is over the $600 mark, how do I go about filling a 1099 form and is there anything else I should be aware of come tax season time next year?