proof of expense for rental properties

I used a contractor for several repairs. He works for himself. When I asked for an invoice for the repairs, he told me that he has to add a sales tax to the invoice if he issues one. What should I do?

406

Level 15

Dec 9, 2023 9:47:12 AM

without an invoice, if audited, the expense could be disallowed. so your choices are to assume the audit risk, or pay the contractor the sale stax.

note that unless the IC was a corporation you should have obtained a w-9 from them. either their EIN or SSN because if you paid then over $600 a 1099-NEC should be issued. The penalty for failure is up to $290. (2022)

Returning Member

Dec 9, 2023 10:21:31 AM

1099-NEC only applies to businesses. I only own one property and I don't have any businesses. Does 1099-NEC requirement still apply to me?

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proof of expense for rental properties