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Do I need to submit a 1099 to a Contractor?
We purchased a building this year and did a major remodel (gutted and rebuilt). Do I need to submit 1099's to the contractor and sub-contractors? I'm assuming we do for labor, but I can't find anything anywhere that says anything about capital expenses... Thanks!
5 Answers
- Bostonian In MOLv 71 decade agoFavorite Answer
If the contractor is incorporated, no you do not need to file a 1099-MISC. If he's not incorporated then you generally need to file a 1099-MISC if you paid him $600 or more for services or $5,000 or more for goods for resale.
Send him a Form W-9. (You should have done this before the work was done.) If it comes back marked as a corporation, you can skip the 1099-MISC.
Note: This may be changing in the near future. There have been moves in Congress to require 1099s on many more business payments than the law currently requires.
- troLv 71 decade ago
whoever performs services for you in the amount of $600 or more that is not a corporation, you issue a 1099 to
and you will need to request the forms from IRS, use 1-800 829 3676 to order them they are not downloadable
- Margarita DLv 61 decade ago
As far as I am aware as long as the contractor is licensed, you do not need to give him or any of the subcontractors a 1099.
I hope this helps. Good Luck!
Source(s): Experience -- having worked as contractor and also developing my own projects. - Anonymous1 decade ago
Although a 1099 is generally required by tax law, in my experience it is rare that businesses send them. In my businesses, 1099's covered maybe 10-15% of my total revenues, if that.
- 1 decade ago
Bostonian in MO has hit the answer squarely.
Source(s): I am an Enrolled Agent.
