Tax, SDIRAs & Cost Segregation

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John Morgan#1 Creative Real Estate Financing Contributor
  • Rental Property Investor
  • Grand Prairie, TX
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Rehab/contractor tax question

John Morgan#1 Creative Real Estate Financing Contributor
  • Rental Property Investor
  • Grand Prairie, TX
Posted Sep 20 2019, 11:44

I got an estimate for a rehab from a contractor for 30k. Since he has a business, do I still need to obtain an unincorporated IC taxpayer ID number and file a 1099-MISC form with the IRS? Or since he has a business, all I need is a receipt for the total cost and depreciate that amount over 27.5 years? I realize I can accelerate some of the rehab and depreciate over 5 years. However, I’m just wondering if a receipt from them is good enough and assume he is reporting this work for his business.

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