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Updated over 3 years ago, 08/18/2021
Any problem if I don't issue 1099 to handyman with job over $2K?
I recently paid a builder about $4,500 total for several projects at my rental home in Indiana. These were: building a new wood deck at back door, building new staircase in basement, installing a new window, repairing a floor, building a bedroom closet, hauling out the junk the tenant left behind. Although he has a business name "Absolute Carpentry" on his invoices , he requested checks for payment be made out to his own name , not the business name , which we did.
Now I am wondering , do I need to issue him a 1099 when I do my taxes at the end of 2021? I don't have his social security # or tax id # . Will I be able to issue that without the tax id? Will there be any negative consequences for me if I do not issue the 1099 ? Or if I issue it to his name "Dale XXXXXXX" and not his business name ?
What is the dollar limit where you can skip issuing the 1099?
I doubt he'll call me back if I contact him since he didn't want to do an additional project at my house (painting) recently because he had taken on bigger more expensive projects.
I own the rental home in my own name, not an LLC.
Any replies would be appreciated !!