1099 for contractors for buy/hold investor
I'm a PASSIVE buy and hold investor. I have property managers and I buy from turnkey providers.
I want to barely look at my monthly statements and let my investment grow as passive as I can.
That "passive" investing becomes very active during tax season. Even though my property managers send me end of year statements, it paperwork and tax info gathering just kills me.
I love the chase but hate the house cleaning.
Here is my question: As a purely passive buy/hold investor, do I need to generate a 1099 for contractors for times greater than $600. Now, most of my repairs are done via property managers but a few big ticket items were done outside of the property managers like - roof replacement.
So far it's clear that if you are running an active flipping or do a lot of rehabbing, you need to generate 1099s. But on the forums at least, it seems to suggest that as a buy/hold passive investor, that 1099s are optional.
I would really like to hear from other pure buy/hold investors about how they have been doing tax preparation.
Sadly, I just learned about 1099s just now and scrambling to get them done.
Buy/Hold REI just seemed much less passive after learning about 1099s.