I own rental property and receive passive income. I paid over $600 to a contractor. I read that I don't need to send a 1099-Misc , but Turbotax asks? I'm a bit confused.

The program asks but you can just answer NO for a Form 1099-MISC.

If you are only a landlord and not in the business of renting properties then you are not required to issue a Form 1099-MISC to anyone providing services on your rental property.

It became a little fuzzy under the new 2018 tax law.

Landlords are not require to issue 1099-Misc to service providers.

Reference:

 http://www.forbes.com/sites/irswatch/2013/03/06/should-landlords-be-filing-1099s-for-service-providers/

But, a landlord 1099-misc may be required to qualify for QBI deduction. Reference: https://www.nolo.com/legal-encyclopedia/do-landlords-need-to-file-form-1099-misc.html

The choice remains in the program because of QBI. The QBI is still a bit of a grey area, but it's been cleared up "a teeny-tiny bit" with the TCJA of 2018. But not enough to warrant removing the question from the program. But basically, you're not required to issue a 1099-MISC.

For most landlords, if rental income is not your primary source of income, or if you only own say, 2-4 properties you'll have a hard time convincing the IRS you spent more than 250 hours during the year directly involved in your rental property. I myself have 3 rentals and it's a struggle to justify 15 hours for the year with all three combined. I did have one go empty and it took a week to turn it around and get it ready to rent again. But at best, that's 40 hours at the most - and I'd be hard pressed to prove it too.