1099

[Nayesha]

Hi, I own a Hair Salon,S Corp.  I have independent contractors Hair Stylists that rent booths from me.  I, of course, have to pay the rent for my Salon, and I report the income I receive  from booth rental on my business tax return.  My Stylists keep telling me that when they file their personal taxes, they are advised by the Tax preparer that I am supposed to give them a 1099-? at the end of the year. I have never provided a 1099 because I do not pay them, so I'm confused and trying to get an answer that I can share with them that we will understand. Thx!!

[Bsch4477]

There’s no reason to give them a 1099 since you didn’t pay them anything. You could give them a receipt for their rent paid if they want documentation of their business expense. 

[DavidD66]

Based on what you have stated, there is no reason for you to be sending the stylists who rent booths from you Forms 1099-MISC or 1099-NEC.  What would you report?  You don't pay them.  Conversely, if the stylists pay you more than $600 per year, then they should be sending you a Form 1099-MISC, unless you are incorporated (not to be confused with a LLC).