1099 my contractor to claim as an expense

Forum|Forum|3 years ago
February 22, 2023
1 reply
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If i pay a tree trimmer $2500 or a contractor $180k to extend my rental, I can't claim it as an expense any of it unless I 1099 him? Most contractors(id say 97%) i talk to won't accept the job if they're 1099ed

AmyC

Employee

Not quite. IRS Pub 527 for Rental Property does not state the form must be filed before expenses can be claimed. You should do your best to file the form, if required. You will want to have proof of all payments made. For ex ample, a check or credit card payment to the tree trimmer and contractor. If the IRS decides to audit you and ask about the expenses, you will have the proof of payment.

While payments to non-employees are generally reported, not always. The Instructions for Forms 1099-MISC and 1099-NEC, Miscellaneous Income and Nonemployee Compensation states exceptions including:

• Generally, payments to a corporation (including a limited liability company (LLC) that is treated as a C or S corporation).

To go the extra mile, it would not hurt to have About Form W-9, Request for Taxpayer Identification Number (TIN) and Certification. You can fill in the information you know, ask for the rest. If they refuse, just write refused on the form. Keep it with your files.

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