Forms 1099-NEC

Forum|Forum|19 days ago
June 17, 2026
1 reply
13 views

I own two rental houses that I expect to appreciate over time. I do not consider myself to be in the rental property business. I have used some independent contractors to make some minor repairs to these houses that sometimes exceed $600. I have seen some Turbotax opinions that in this case it is not necessary to file Forms 1099-NEC. What is your opinion?

Rick19744

Level 13

Opinions on this vary.

When you say “I do not consider myself to be in the rental property business.” I am assuming that you are referring to the fact you do not consider yourself to be a real estate professional (REP).

However, for purposes of Section 199A (qualified business income deduction) you can qualify for this deduction without being a REP.

In this case, that means you are taking the position that you are in a trade or business. If you are taking this position, I would recommend you file the appropriate 1099-NEC. These are not complicated forms, however, it does require you to have the contractor complete a form W-9. Depending on how the contractor is structured, you may not be required to file a form for the business.

Also, keep in mind that for 2026 the filing threshold has been increased to $2,000 and then adjusted annually for inflation.

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.