subcontractors

[33quaser205]

As a small residential remodeling/maintenance DBA,  I cannot find the proper answer to this ?    After sending the total of subcontractors (materials and labor charges ) on a 1099 nec for work completed at my projects, do I separate their materials from their labor and  then go back on schedule C and list the materials as Expenses?  if so , where?

[pk]

@33quaser205 

Assuming that you are  yourself a Schedule-C filer

(a) the separation  of sub-contractor material and labor, really depends on  how you paid them --- if the 1099-NEC is for the total  amount they charged you  ( i.e. labor and material cost lumped together ) and you paid  the same way -- then the material /labor distinction is shown on their  Schedule-C.  In  such a case you only show  sub-contractor  total/gross cost to you -- your own schedule-C does not breakdown labor/material /other  etc.

( b ) Similarly Your Schedule-C will only show your Gross Project income and Project costs ( subcontracts ) -- it is the equivalent of COGS for a retail business.

Does this help ?  Is there more i can do for you ?