@unixkernel wrote:
Would I have to issue him a 1099?
Starting this year, 2020, nonemployee compensation that used to be reported in box 7 of Form 1099-MISC will be reported on Form 1099-NEC instead. You are required to issue a 1099-NEC to report payment to a person for services, not payment for goods. When you clarify the ownership of the equipment and the contractual agreement with your friend, it should then be clear whether you are paying him for his services (which would require a 1099-NEC) or for the equipment (which would not require a 1099).
