AliciaP1
Expert Alumni

Get your taxes done using TurboTax

In order to provide a Form 1099, you are required to request a Form W9 from your contractor.  This form identifies the type of business you paid as well as their ID number you need to file the Form 1099 for.  Best practice would have you request this form and receive it before you make your first payment to the contractor.  But, you are only required to send a Form 1099 if your rental activity is considered a business.   

 

Per the IRS:

Trade or business reporting only.

Report on Form 1099-NEC only when payments are made in the course of your trade or business. Personal payments are not reportable. You are engaged in a trade or business if you operate for gain or profit.

 

@charjean47

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"