Home remodeling. Paying my general contractor and architect. Does it need to be LLC or can I just have my construction agreement and pay via check to individual?

[MaryK4]

@MagicLee Can you clarify your question?  (For example, Are you asking for a rental property for the purpose of issuing a 1099?)  Thanks!

[xmasbaby0]

Whose home is being remodeled?  Your own residence?  Or are you the builder who is remodeling a home for a homeowner?

[MagicLee]

It is my own primary residence.

[MagicLee]

Sure, its to increase my home cost base, so that when I sell my primary home in the future, I'm can reduce my taxes since I will be putting in a lot of home improvements. Gut renovation, raising ceilings, adding second floor, etc. 

I know I need to keep receipts and invoices, but was wondering is there any difference if I write my check to my contractor's name or to his company name?

[SusanY1]

No, there is no difference in the ability to increase your basis for major renovations if you write your check to an individual or a company.  The expense "counts" either way.  

It isn't common for the IRS to ask for "proof" but it is always wise, of course, to keep the documentation.  Your contracts and receipts serve as that proof, no matter how you write the check (or even if you pay with cash and have no check  at all). 

 

[MagicLee]

Thank you, this is helpful and the confirmation I was looking for!