Independent Contractor and 1099

General Real Estate Investing
1

I have had an independent contractor working for me on my rehab (which I have yet to sell). Am I required to 1099 him?

If so, can I do that as just an individual? In other words, I am not a business.

Thanks for any input.

2

yes, yes.
get the paper work from your tax preparer, even if that is HR Block.
easy paper work to do.

3

You only have to prepare a 1099 if he/she earned more than $600. You can download a 1099 online. Just visit Google.

4

Can I jump on this thread as I’m in the same position - I have a contractor working on a rehab which will be completed in early 06. However, I’ve sent him most of the money in 2005. Do I have to 1099 him for the amount I gave him in 2005 (and then again for the 2006 amount), or can I do it when the house is completed and 1099 him for the entire amount then?

5

I believe if he recieved pay in both years you’ll need to file for both years stating the amount received in each year.

6

You should 1099 the contractors for the amounts PAID in the respective years, not the amounts billed.

You need a 1099 misc, fill in the nonemployee compensation box as well a s the recipients info.

Then you send the FEDS copy with a 1096 that identifies you as the payer.

It’s two forms. It’s real easy. Good luck.

Hope you got your copntactors SSN’s. :slight_smile:

I’m not sure you can use the downloaded forms but you can order originals for free from the IRS.