JohnB5677
Expert Alumni

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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