RENTAL PROPERTY 1099NEC

[THOMPS92]

I own a rental property and is considered a real estate professional.  I paid a company to fix some foundation work on my property.  I put down a $6K deposit and got a loan for the other $27K.  

1. Am I required to send a 1099 NEC to the company who did the work? and

2.  How do I classify in QBO in order for me to be able to write off the expense for the foundation work.  

I have already set the loan up in the system as a long-term liability under Notes Payable.

Please help the 1099 deadline is today 1/28/25

[KrisD15]

HERE is a link for getting QuickBooks answers. 

As far as your tax question, yes, as a professional landlord, (Self-Employed) you should issue a 1099-NEC to the contractor unless that contractor supplied you with a W-9 indicating they are incorporated. (Look at W-9 line 3a)

The amount of the cost is not reduced by the amount of the loan. Expenses paid by loans and credit cards are treated the same as those paid by cash. 

The cost of the foundation repair does not increase the original value, so it is a repair, not listed as a new capital improvement asset.