1099s

[Kyle Meyers]

As I understand it, 1099s are required for anyone I pay $600 or more during the year for my rental property investing. I have a few questions about the exceptions though.

1. Do 1099s have to be sent to cities or counties?

2. If I pay an LLC which is owned by a corporation, do I have to send a 1099?

3. Do I issue 1099s to non-profits?

[Bill Walston]

Originally posted by Kyle Meyers:

Also, if I pay a corp, do I have to have any kind of proof it was a corp?

I suggest you have any non-employee performing services for you complete a W-9 form. I do this before they complete any work, regardless of how much they may be paid during the year. This way, if I do pay them $600 or more during the year I don't have to track them down for the info. I already have it on file.

You can check out the W-9 HERE. You'll notice there is even a place for the owner of an LLC to indicate the taxable status of the entity.