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nashdart
New Member

1099 for remodel work on rental property?

I hired two friends/workers to remodel a condo (bought as rental property). TurboTax asks me if I paid anyone $600 or more to do work on the property? It was a significant remodel, and we paid a lot more than $600, so the answer is definitely yes.

However, the exact verbatim question is: "Did you pay for any work on this property that would require a 1099-MISC?" Do I answer YES to that question if I spent over $600 but didn't issue any 1099s? (I'm an individual, not a company.)

To make it even more confusing, if I answer YES to the question, it then gives me a choice to say, and I quote, "No, I did not pay for work that required a 1099." So can I say YES to the first question and NO to the second? Those seem like opposites.

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3 Replies
bwa
Alumni
Alumni

1099 for remodel work on rental property?

The work does not require a Form 1099 as it is for investment property, not for a trade or business.

nashdart
New Member

1099 for remodel work on rental property?

Thanks for the response. So I can say "Yes, I paid over $600 which requires a 1099," but then answer for the follow-up, "No, I didn't pay for work that requires a 1099"?
bwa
Alumni
Alumni

1099 for remodel work on rental property?

The correct answer is "No, I didn't pay for work that requires a 1099."  The other answer is incorrect because no 1099 is required.

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