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Get your taxes done using TurboTax
No, investment payments do not require a 1099-NEC.
If your business paid a contractor more than $600 in a tax year, you would file Form 1099-NEC. However, if the independent contractor is registered as a C corporation or S corporation, a 1099-NEC will not be required.
If investment money was sent to a Corporation, Partnership or Trust it would be recognized on a K-1. However, there is no tax consequence to the providing nor receiving investment money. Tax is based on what happens with the use of the money.
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‎January 27, 2021
10:15 AM