Couple of questions... I'm a Landlord. I usually just file Schedule E. But tenant did a lot of damage. Four months of fixing up. Hired a couple of contractors to do some work...install cabinets, paint, replacing plugs, etc. I have all invoices and paid by check. Do I need to send a 1099-NEC? And, FYI, Contractor also refuses to give me any of his info. Can I still deduct his costs and do I deduct these costs on Schedule E?
Thank you.
Q. Do I need to send a 1099-NEC?
A. No.
Q. If I don't issue a 1099-NEC, Can I still deduct his costs and do I deduct these costs on Schedule E?
A. Yes.
It became a little fuzzy under the 2018 tax law. Landlords are, generally, still not require to issue 1099 forms to service providers.
References: http://www.forbes.com/sites/irswatch/2013/03/06/should-landlords-be-filing-1099s-for-service-providers/
But, a landlord 1099 may be required to qualify for the Qualified Business Income (QBI) deduction. Reference: https://www.nolo.com/legal-encyclopedia/do-landlords-need-to-file-form-1099-misc.html Most rental properties do NOT qualify for the QBI deduction.