Can paying the rent or other bills for a 1099 freelancer be reported in the same was as paying the freelancer directly?

[mrfkl]

If you are self employed and you hire a 1099 Freelancer, is it necessary to make payments directly to the Freelancer?

If payments are made by paying the freelancer's landlord for their rent OR by paying the freelancer's credit card company for their credit card bill, could those payments be treated in the same way as if the payments were made directly to the freelancer? Can they be reported on the 1900-MISC for the freelancer, along with other payments made to them directly? Can the be deducted as business expenses on Schedule C for services provided by the freelancer?

Thank you.

[ColeenD3]

Yes. It is the same. It would be better however, to give him the money and let him pay his own bills. That way, there is no question. 

At the very least, bartering is an accepted practice. You, for all intents and purposes, exchanged paying his bill for his labor.

Topic 420 - Bartering Income

Bartering is the exchange of goods or services. The term doesn't include arrangements that provide solely for the informal exchange of similar services on a noncommercial basis. Usually there's no exchange of cash. An example of bartering is a plumber exchanging plumbing services for the dental services of a dentist.

[mrfkl]

Thank you! Would the practice of paying the freelancer's landlord (rather than paying him directly) be considered "bartering"? or would it be considered a regular payment for services rendered?

If it is considered bartering, would it need to be reported or treated in a different way? Or you simply issue a 1099 for the amount of the bills paid (as you normally would if you pay the freelancer directly)?

Finally, if the freelancer was an adult relative or a family member? - do the same answers to my questions apply? Or does anything change in any way?

[ColeenD3]

No, it is not bartering per se. That was just an example of why it is deductible since I could not find a reference to your specfic situation from the IRS.

Even if it were, you would still enter it the same way as cash received. It is the value of the exchange.

Family members have their own set of rules. Please see this link. Family Members

[mrfkl]

Thank you for clarifying!

I looked at the link you referenced regarding family help. That seems to apply to spouses and children under 21 or spouses.  I think it also seems to focus on employment (wages), not 1099 freelancing is that correct?

So there are no special considerations when hiring your own children that are over 21?