Question

My husband hired a plumbing company to repair our leased house for our tenant. He paid about $2300. He realized that he forgot to issue 1099-NEC to the plimbing company until he is doing tax return now. What should he do now? Thx.

Forum|Forum|2 years ago
April 3, 2024
3 replies
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Employee

Does your husband have an invoice from the plumbing company and a cancelled check or credit card statement showing the expense? If your spouse is not running a business he does not need to issue a 1099NEC to a plumbing company that did work for him.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

J

JuliaxywAuthor

Thank you so much for your quick response. He got a invoice from the plumbing company and he is not running a business for the rental house and just manage the rental house by himself. Thank you.

M

Mike9241

If you are claiming the QBI/199A deduction for the rental you are saying it's a trade business. However, 1099's do not have to be issued to corporations.

J

JuliaxywAuthor

He is not running a business for the rental house, just managed the rental house by himself. When he used the Turbotax to do the rental house section, The Turbotax says that if you paid someone such as a independent contractor more that $600, you may need to complete a form 1099-NEC. This information shown in Tiurbotax confused us. Thank you for your clarification.

F

Fearetix

If the repairs were necessary to keep the property in good condition for your tenant, they would typically be deductible as a rental expense. Keeping track of all repair costs is key, and having reliable plumbers like pm247.co.uk can make future maintenance easier. If you're unsure whether this expense falls under a deduction or an improvement, IRS guidelines help clarify, but tax software or a professional can confirm the best way to report it.