Rehab/contractor tax question

[John Morgan]

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.

[Eamonn McElroy]

You should request and obtain an executed IRS Form W-9 from the independent contractor.

You may have an obligation to issue the IC a 1099-MISC depending on the information on the W-9, how much you paid the IC, and the method of payment.