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Investors & landlords
"If the contractor has his own business, does that mean I don't need to worry about it?"
If the contractor is a corporation, you don't have to issue a 1099-NEC.
Here's an informative article on whether or not rental real estate activity qualifies as a "trade or business":
https://www.nolo.com/legal-encyclopedia/is-your-rental-activity-business-investment.html
If your contractor is not a corporation, I'd just go ahead and issue the 1099-NEC. There's no penalty for doing so, and it'll serve to document the expense.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
‎June 16, 2022
6:47 AM