If I hire a company to install or replace something at my rental property, do I have to issue a 1099-misc or does that only apply if I hire an individual to do the work?
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Only individuals and even then it's a little fuzzy.
It became a little fuzzy under the new 2018 tax law. Landlords are, generally, still not require to issue 1099-Misc forms to service providers.
But, a landlord 1099-misc may be required to qualify for the QBI deduction. Reference: https://www.nolo.com/legal-encyclopedia/do-landlords-need-to-file-form-1099-misc.html
Most rental properties do NOT qualify for the QBI deduction.
@Hal_Al wrote:Most rental properties do NOT qualify for the QBI deduction.
That is correct and there is a Section 199A safe harbor for rental real estate.
If the rental rises to the level of a "Trade or Business" and you pay someone $600 or more during the year for services, you are required to issue a 1099 to a non-corporate business. If they are a corporation, a 1099 is NOT required. But you would want the business to fill out a W-9 so you KNOW that they are a corporation or not.
If the rental does NOT rise to the level of a "Trade or Business", no, a 1099 is NOT required.
Unfortunately, whether or not a rental rises to the level of a "Trade or Business" is tricky and often unclear. You would need to do some research on that matter.
Bottom line ... even if they are not required it would not hurt to issue them to CYA. Corporations are still exempt so have them fill in a W-9 so you know their status.
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