Confused about 1099's and Taxes
I do not have a house flipping business. My wife and I bought a home and are rehabbing it using our own saved money. We had all intentions of living in it, but due to rehab costs and other new decisions, we are now going to flip it and buy more properties so that we have assets and not one big liability.
Here is a quote that I found on the Quickbooks website:
"If you hire someone to paint your business ( store ), for example, you might have to send her a 1099-MISC if the work is over $600.00. If you hire someone to paint your personal house, don't sweat it. The 1099 form is for businesses" "Independent contractors are temporary workers that provide goods or services to another company under specified terms outlined in a contract, such as an Independent Contractor Agreement.
My big question is: Since these contractors were coming to my personal home to do work for my wife and I, and we are not a house flipping business, do I send them 1099's?...... In the past, in our permanent residence where we live today, we have purchased a new HVAC for $4000.00, new roof for $12,000, kitchen remodel, etc, and have never sent anyone a 1099.
When, and at what point, do you need to send out 1099's?
Thanks!