Tax, SDIRAs & Cost Segregation
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Updated about 12 years ago on .
Most recent reply
presented by
Do I still can deduct the cost without file form 1099MISC
I hired several persons/contractors to do the painting, landscaping, cleaning and maintainance, but I don't have their SSN or TIN, so I did not send them form 1099MISC, do I still can deduct all those costs from the rental incomes on my tax return this year?
Most Popular Reply
Sam W.,
As was said above. If you are a landlord only you do not have to issue a 1099-MISC. Although I highly recommend it. It is one less thing to be audited.
Not the LLC does not have to issue a 1099 in regard to the rental property, again however, it is recommended.
-Steven
Did you at least get a receipt as to what they did with a break down?
My cpa complains to me bitterly about this when I show up with receipts on large projects done by contractor.
Finally I agreed that I would have a name and phone number and address so if IRS got involved we could track people and have more reliability as to accountability in the contract projects. Ein # or ss# before you start large jobs is the best idea if labor is involved.
If you bought a refrigerator from someone that is different or a furnace then let a receipt be enough for items u buy.
Your CPA will tell you what he wants, mine has told me if its a big job with labor get a ss or an ein# so we can 1099 them.
Gary Li,
If this is for a rental property, you do not have to issue a 1099; however, I highly recommend it as it is one less thing for the IRS to question.
-Steven
why not if its a rental property?
There recently was an act imposed to require landlords to issue 1099s however, it was determined that it would be too much paperwork for the IRS to handle and process.
Justin, generally rental income is not considered income from a "trade or business." With few exceptions, only those who pay expenses incurred in a trade or business are required to issue Forms 1099.
Hope this helps :)
on form schedule E 2012, part I, looke like something is new:
1. it says: "if you are in the business of renting Personal Property, use Schedule C." what's that mean? Rental Property is a business, isn't it? can't we use Schedule E any more? confused.
2. it says: "Did you make any payment in 2012 that would require you to file forms 1099?" "If yes, did you file required Forms 1099?"
how to fill in the answer in Form Schedule E 2012?
Thanks
Steven, would you happen to have any literature relating to the landlord's not having to issue 1099's?
Bill Walston / Steven Hamilton II,
I know the old "do I have to issue Form 1099-MISC" question has been batted about on BP for over a year now. It seems quite clear (as you have repeatedly stated) that most landlords who are non-RE professionals do not have to issue 1099-MISCs when they pay more than $600 in a tax year for services. That said, I have a couple of quick questions:
- If you pay an unincorporated individual (private citizen, non-business entity) more than $600 do you have to issue a 1099-MISC?
- If you have a real estate LLC, does the LLC have to issue 1099s since rental RE is the trade or business the LLC is engaged in?
Thanks in advance for probably replowing this ground.
-Sam
Sam W.,
As was said above. If you are a landlord only you do not have to issue a 1099-MISC. Although I highly recommend it. It is one less thing to be audited.
Not the LLC does not have to issue a 1099 in regard to the rental property, again however, it is recommended.
-Steven
Sam W.,
What Steven Hamilton II said ;)
To issue (or not issue) Forms 1099 seems to be one of the most frequently asked questions by landlords during the tax season. And though I'm all for NOT filing any more paper work with IRS than necessary you can always follow the old rule "when in doubt, send it out." :) Although there are penalties for FAILING to file a required form, there is nothing that prevents you from filing a Form 1099 when it's not required...