topic Llc in Business & farm

Llc

user17684293700 — Wed, 14 Jan 2026 22:27:28 GMT

I’m an llc I hired a c corp to do

foundation work .

where do I report his earnings

on my tax returns if I can’t send him a 1099

Re: Llc

VolvoGirl — Wed, 14 Jan 2026 22:31:58 GMT

You don’t need to send him a 1099NEC. You need to give a 1099NEC (previous a 1099Misc) to anyone you paid $600 or more to for the year. But not to corporations or for merchandise.

You enter it under Contract Labor. If you have the Home & Business version…..

Go to Business tab- then Continue

Business Income and Expenses - Click the Start or Update button

If you haven't added a business yet you have to go though a lot of screens describing your business. Or if you already added your business, you should see the Business Summary page that lists your businesses, (right below the list you can Add Another Business)

Then click EDIT by the business name and the next screen should be a list of topics,

Business Profile, Income, Inventory/Cost of Goods Sold, Expenses, Assets, and Final Details last.

Under Business Expenses, Click Start or Update by Other common business expenses

Contract Labor is the 5th item in list.

Re: Llc

Mike9241 — Thu, 15 Jan 2026 01:55:21 GMT

I assume the foundation work was done on rental property. In this case, depending on various factors, it may have to be capitalized and depreciated.

i assume the useful life of the work is more than 12 months so the De Minimis Safe Harbor Election is not available.

Generally amounts paid that result in an improvement must be capitalized.

the rules are contained in REG 1.263(a)(3)(j) thru (l)

(j) betterments

(k) restoration

(l) new use

Becuase of all the exaples i posting a link to the reg

https://www.law.cornell.edu/cfr/text/26/1.263(a)-3

there is another safe harbor if your gross receipts are $10,000,000 or less. This allows the taxpayer to not capitalize improvements to an eligible building property if the total paid during the year for all repairs, maintenance, improvements, and similar activities performed on the building does not exceed the lesser of [REG 1.263(a)-3(h)]

1) $10,000 or

2) 2% of the unadjusted basis of the building