Question

1099-NEC required for Rental property repair

Forum|Forum|5 years ago
February 27, 2021
2 replies
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My wife and I have a rental property on which we did extensive repairs and upgrades this year. Exterior painting, new A/C system install, roof repairs, etc. of which all were performed by professional companies and were all well over $600 in expense. As we paid companies for the work performed on the rental, do we have to file form 1099-NEC for each of the jobs performed?

L

linaj20201

You are required to issue Form 1099-NECs to those professional companies which you have incurred expenses for more than $600. Click here: 1099-NEC

To create Form 1099-NEC, here are the steps:

In TurboTax Self-employed online program,

After sign in, select Pick up where you left off
On your left menu, select Tax Tools/drop-down menu, then Tools
On the next pop-up box, Tools Center, select Topic Search
Under Topic Search, type in Create and highlight create from 1099-misc or w-2
Select Go
On screen,"W-2/1099 Reporter" select Start here
Follow prompts

These will be considered as your rental expenses on Schedule E. It will show on line 5 of Schedule 1 and line 8 of your Form 1040.

[Edited 3/23/2021 9: 17 am EST]

@reweinzinger

Please see edited response. Sorry for the confusion.

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reweinzingerAuthor

Thanks for your reply but, based upon your response, I may not have been clear enough in my original posting. Let me attempt to clarify. My wife and I are the owners of the rental property, it is the only rental we have and not a significant source of income for us (the rent payments just barely cover the mortgage payments) since I have a regular 9 to 5 job elsewhere. Which repairs and improvements needing to be done to the rental in 2020, we paid other companies to do things like install an A/C system, paint the house and repair the roof. I did not receive any money or 1099-NEC forms for this work nor did I create 1099-NEC forms for any of the companies that did the work for us since all the jobs (all over $600) were performed by registered companies. My question was, as all the jobs that I had those companies perform were over $600, do I need to create forms 1099-NEC and provide them to those companies that did the work? It sounds unusual that I would need to do so but wanted to confirm. Thanks.

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JeffreyR77

You are not required to issue a 1099-NEC or 1099-MISC to any entity that is incorporated or that was paid less than $600 in the year.

Am I Required to File a Form 1099 (see Not Required to File an Information Return)

C

Cody210

Employee

OK, so not to belabor this topic, but I am now getting knee-deep confused. (I tried going thru STEP by STEP again in TTax to get that PROMPT = "Did you pay anyone $600+ for work done at your Rental Property." For the life of me I can't find it to see HOW to create a 1099-NEC to Send to the Gardener.

So I guess my question is - How do I create a 1099-NEC to email to the guy? This is NOT a QBI property.

Thanks in advance for all your knowledge. I'm learning way too much about this issue ... lol, or crying.