1099 or receipt from contractor

[Account Closed]

If I pay a contractor for work performed should he give me a receipt or do I 1099 him? He uses his own tools and I give no training or anything. Thanks

[Kyle J.]

@Account Closed The issues of receipts and 1099s are separate issues.  To answer a few of your questions:

- You should always get a receipt when you have work done.  It documents what work was done, by whom, when, and that you paid for it.  

- You are NOT required to issue 1099s for personal purposes.  So, in your example about paying a contractor $601 to repair the HVAC at your personal residence, you would not be required to issue a 1099.

- You MIGHT have to issue a 1099 if you have the same work done for a rental property because you're generally required to issue 1099s to report payments you've made over $600 in the course of your trade or business during the year.  However, the reason I say "might", is because there are several exceptions.  For example, if you paid by credit card, or paid by PayPal, or the payee was a S or C corporation, then you don't have to issue a 1099.  

I'd suggest consulting your own tax advisor and reading this publication from the IRS for more specific guidance on the topic: https://www.irs.gov/pub/irs-pdf/i1099msc.pdf.