Do I need to submit 1099s for contractors on a house I rehabbed and sold but had intended to rent?

[Will Buscher]

I have two rental houses and one I purchased to rehab and intended to rent out, however, I decided to sell that property.

I've read through the instructions for the 1099 and know that landlords aren't required to send out 1099s but since I purchased and rehabbed that house with the intent to rent it, only to subsequently sell it, will I need to send my contractors 1099s?

Also, I participate passively in renting as I have a full-time job not in real estate.

Thanks in advance for any responses!

[Bill Gulley]

Welcome to BP, Will.

I didn't realize there was an exemption for landlords not issuing 1099s when they hired a worker, but since the property wasn't placed in service I guess that one wasn't a rental and I'd 1099 them.

I think I'd 1099 everyone over a hundred bucks regardless of my business type.

@Steven Hamilton II

Don't know of the exemption, sounds rather strange as it would seem the intent of the requirement would be to have an audit trail for small cash transactions more than hitting rehabbers or flippers or a guy with a lawn service who hires part time folks at times. :)