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No, you do not send a Form 1099-MISC to a company that repaired a well pump and replaced pipes.
Is the replacement of a well pump a "repair" or "capital improvement"?
Thanks!
If the replacement was for a well that was formerly not operational then it would qualify as a capital improvement. Otherwise, it would be classified as a repair. The IRS classifies various repairs and improvements in Publication 527.
A well pump replacement should also fall under the routine maintenance safe harbor since it is a repair that you would expect to make more than once during the useful life of the well.
Many thanks! It was existing and the well pump was struck by lightening. Did not make an insurance claim as the repair was $1,135 and deductible was $1,000.
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