Form 1099-MISC question

[arndtco]

A subcontractor charged me $1000 to do some work for my company.  He charged $200 worth of material on our account at the lumber store, so I deducted that from what I owed him and wrote him a check for $800. Question is do I issue a 1099-MISC for $1,000 or $800?

[DanielV01 · Accepted solution]

$800.  Make sure you keep the lumber receipt, because you now claim that as an expense on your business.  ($800 pay plus $200 lumber you provided equals $1000 of his invoice).  If he insists that he is claiming the lumber, then the 1099 would be for $1000. (And let him deal with the paperwork).