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Level 3
July 14, 2022
Question

1099 to cut the grass?

  • July 14, 2022
  • 1 reply
  • 46 views

I have an elderly tenant who is unable to take care of the yard so I usually just cash app one of the neighborhood teenagers $50 or so to mow the grass each week. Do I have to send him a 1099?

1 reply

Critter-3
Level 15
July 14, 2022

If you will be deducting this expense on the Sch E for the rental AND you pay him $600 or more  AND you are treating the rental as a business for the QBI  then   YES   otherwise  NO.

vgentryAuthor
Level 3
July 14, 2022

So I guess $50 a week will eventually add up to over $600. Yes I treat it as a rental and it comes out of the business account. I linked my business account to my CashApp account and send it that way. 

That just seems weird, sending a 15 year old kid a 1099 for mowing the grass.

Critter-3
Level 15
July 14, 2022

Self employment income knows no age min or max  ... this is the paper trail needed to deduct the expense for "contractors" on the Sch E.