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July 14, 2022
Question

1099 to cut the grass?

  • July 14, 2022
  • 1 reply
  • 0 views

I have an elderly tenant who is unable to take care of the yard so I usually just cash app one of the neighborhood teenagers $50 or so to mow the grass each week. Do I have to send him a 1099?

1 reply

Critter-3
July 14, 2022

If you will be deducting this expense on the Sch E for the rental AND you pay him $600 or more  AND you are treating the rental as a business for the QBI  then   YES   otherwise  NO.

vgentryAuthor
July 14, 2022

So I guess $50 a week will eventually add up to over $600. Yes I treat it as a rental and it comes out of the business account. I linked my business account to my CashApp account and send it that way. 

That just seems weird, sending a 15 year old kid a 1099 for mowing the grass.

Critter-3
July 14, 2022

Self employment income knows no age min or max  ... this is the paper trail needed to deduct the expense for "contractors" on the Sch E.