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Level 1
posted Feb 4, 2023 8:07:01 AM

Is Form 1099-NEC Required for Remediation Work

Last year I had to hire a company to remediate and renovate my condo rental property for flood damage caused by another neighbor. I received reimbursements from insurance companies.
Do I need to send form 1099-NEC to the company I had for the work on the condo?
If so, do I limit the amount paid to only what was paid in 2022?

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3 Replies
Expert Alumni
Feb 4, 2023 8:58:06 AM

No, you are not required to send a 1099-NEC in this case unless your rental company also does renovation work.

 

Per the IRS:

File Form 1099-NEC for each person in the course of your business to whom you have paid the following during the year:

  • Services performed by someone who is not your employee (including parts and materials)
  • Cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish
  • Payments to attorneys (including law firms or other providers of legal services)

Level 1
Feb 4, 2023 9:01:12 AM

I don't have a rental company. Just own a condo that I rent out. Thanks for the reply!

Expert Alumni
Feb 4, 2023 9:11:48 AM

Ok.  If you are not running a business you are not required to file any 1099 forms regardless of who you are paying.

 

@sflaumen