Do you issue 1099s?

[Bill Briscoe]

I read that landlords are exempted from issuing 1099s to contractors and laborers. Does that apply to buy and hold rehabbers as well?

[Steven Hamilton II]

Originally posted by @Bill Briscoe:

I read that landlords are exempted from issuing 1099s to contractors and laborers. Does that apply to buy and hold rehabbers as well?

Bill,

No, there is no such thing as a buy and hold rehabber unless you are. You are a landlord or you are a rehabber. (I believe you mean you buy it, rehab it and hold as a rental for many years? If you buy, rehab, hold it and self it a year later you actually are a rehabber and subject to SE tax.)

Landlords are exempt from issuing 1099s UNLESS you are a Real Estate Professional.

You always make a copy or verify from their EIN issue letter when doing business in order to avoid being given an incorrect EIN.

LLCs are to be issued a 1099 no matter their taxation.

Here is the discussion on the topic: http://www.biggerpockets.com/forums/67/topics/104024

Questions?