Can I 1099 a Contractor?

44 thoughts on “Can I 1099 a Contractor?

    That's what happens when you know how to use that pipe wrench, you get PLENTY of repeat The Business.
    What are those?!?! Those are my Business socks, I put them on to get and do The Business work…

  • What about a 1099-c? After you evict a tenant, and you get a judgment, and then you give up all hope of seeing your money. While the instruction sheet says you aren't required to file a 1099-c it doesnt say explicitly who is allowed to file one. If you can file a 1099-c and you get a post judgement interest rate of say 4% should you wait until the judgement is almost expired to reduce your taxable income by the largest amount or is it better to file as soon as possible because 4% interest on a deferred write off might not keep up with a savings or money market account that contains the taxes saved by filing the 1099-c

  • I love watching your channel! You’re so informative but still down to earth. It’s like listening to my friends talk lol 💗
    Thank you so much!

  • This actually is not that clear. There are plenty of CPAs and other tax organizations that say buy and hold investors (i.e. landlords) do not have to file 1099s for contractors. It certainly has not been litigated in tax court yet. Certainly if you want to be on the safe side, issue the 1099s. However, I doubt anyone here can cite the tax code that requires landlords to issue 1099s. Notwithstanding, the IRS will do what they want in an audit situation and it is always possible that you will be the first landlord the IRS makes an example of. Some interesting reading on the subject

  • …i always thought that you need to file 1099 if there were more than 20 or 25 k and more than 200 transactions… and 600$ is a limit per year to file your personal taxes if you made more… or thats all wrong???

  • you may be in a big surprise when you have a full time contractor working for you and you are giving him a 1099,Labor and Industry are cracking up on this all the time

  • But is it not the case that, as long as I have receipts for the work that's done, I can deduct contractor work even withOUT 1099ing them? If I have a $900 bill for plumbing, I deduct it whether I sent them a 1099 or not.

  • Maybe you covered this and I missed it but I've only every 1099ed people who are corporations of some sort (Inc, LLC, LLP, etc.). So I would not 1099 the college kid who mowed lawns for me one summer and earned $1200. He was an individual and not a corporation. Your thoughts?

  • I love all the information you guys give. Pulled the trigger and scheduled a consultation on the phone with you guys in a week. Already set up my LLC and cant wait to use my thirties buying up Investments.

  • what if I didn't sell the house I fixed up until this year but a majority of the contractors did the work during last year. Love your show.

  • Im 24 years old my credit score is a 645 im currently unemployed i own 2 properties free and clear i live in one home and my parents in the other im not profiting any money what should i do next?

  • I signed up with my email address for the wholesaling course, in order to receive the free call script that you mentioned. But I never received anything?? 🙁

  • Hey morris many thanks for answering questions.No wonder yr successful!! .. Morris my scenario… i can get 2 SFH with seller finance for 35k each which appraise for cheap also. like 45 tops… should i get thst or get a house that appraises for 80k so i czn pull out cash from it. so 2 houses or 1.

  • Do I have to do these 1099s if I bought this home with the intention of having it fixed/updated and moving in it but crap came up so I sold it? This cost a lot and took many contractors, I'm not an LLC? I don't think I will be doing this again, although I am intrigued about becoming involved in your way of making money, I don't want to become a flipper. Thanks

  • I have a scenario: If I paid my property manager $600 for repairs and he sent me $4600 in rent in 2018. I issued 1099 to him for the $600 and he sent me 1099 for $4600, is this correct way or should I have not issued the 1099 and just let him issue 4000 instead (4600-600)? Thank you.

  • Have you ever had a contractor say okay if you're going to give me a 1099, then the price is going to be x amount higher? I would assume this could happen

  • You say to file a 1099 so you can deduct from expenses. But can’t you deduct the expenses from a regular plumber payment?
    Say you pay the plumber then it goes to your repair expenses and you can deduct this from your gross income. ?

  • Can you guys please teach us the process of how to put your house with a morgage into LLC without being penalized calling the note?

  • Awesome video. I am buying a wholesale deal. Can I 1099 my lawyer (or settlement agent) for closing costs I am paying them? its about $1200.

  • For those of us that are landlords "on the side", and especially those of us that don't have a LLC, is a 1099 still required??? If I understand Turbotax Q&A's correctly, it appears as though 1099-Misc was repealed for landlords… this occurred on April 14, 2011.

    That said, I'm interested to know how your input applies to H.R. 4(P.L. 112-9) ???

    In summary:
    Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 – Amends the Internal Revenue Code to: (1) repeal requirements for the Internal revenue service (IRS) of payments of $600 or more to corporations that are not tax-exempt and of gross proceeds paid in consideration for any type of property; (2) repeal requirements for reporting payments made with respect to rental property which is not part of a trade or business; and (3) increase the limitation on recapture of excess advance payments of the tax credit for health insurance premiums.

  • Even without being an LLC or other entity I am required to 1099 misc all service providers that I paid over $600. No need below that amount, I can just use my receipts for tax deductions. I also can deduct my rental related expenses off my rental income as a small time landlord, no need to form an LLC for tax deductions.

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