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Question on Form 1099-MISC for rental property

I paid Home Depot (through their authorized installation company) $1349 in year 2017 to install water heater in my rental property. I did not issue 1099-MISC to that installation company or the Home Depot.

1. How do I answer the question, "Did you pay for any work on this property in 2017 that would require a Form 1099-MISC"? Yes or No?

2. If I select "Yes", and then I select "No, I did not issue 1099", what is the consequence of that?

3. How do we even issue 1099 to contractors for work in the rental property?

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1 Reply
AmandaR1
New Member

Question on Form 1099-MISC for rental property

The 1099-misc box 7 nonemployee compensation filing requirement, excludes corporations like Home Depot. For #1, you should exclude corporations from your consideration. All other types of businesses qualify. This is really aimed at contractors who work for you. 

#2, I can't say for certain what would happen, but it would not be recommended to report you are not going to follow the requirement. The questions are intended to be a check that the reported information make sense. They are also used for paid preparers to ask the necessary questions. 

#3 TurboTax has an affiliated software for filing form 1099s, Quick Employer Forms. However, since the January 31st due date has passed, you will need to file paper. To do so, you need the actual IRS 1099-misc forms, which you can get from Staples (or other type of store). 

It's easiest to fill them out yourself, since the form is self-explanatory (your information + the person you paid + amount in box 7). If you choose to file the 1099s, you'll also need one form 1096, to submit copies to the IRS by February 28th due date. Form 1096 is like a cover letter, summarizing the forms included with your information. 

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