rjs
Level 15
Level 15

Investors & landlords

You must issue a Form 1099-NEC (not 1099-MISC) to any contractor to whom you pay a total of $600 or more for the year. You must, of course, also file the 1099-NEC with the IRS. As TomD8 said, Form 1099-NEC is only for payments from your business (which includes a rental property), not for a contractor who did work for you personally, such as work on your own home. Form 1099-MISC is no longer used for payments to contractors.


If the total that you paid a contractor during the year is less than $600, you do not have to issue a 1099-NEC. You can still claim it as an expense of your rental property. Your accounting records for the rental should show the payment.


In order to issue a 1099-NEC you must have the contractor's tax ID number (EIN or SSN). To avoid problems, you should always get a contractor's tax ID number before the contractor does any work for your rental, even if you don't expect to pay $600 or more, in case you end up using the contractor for additional work later in the year.