Tax Question for Landlords: Do you issue 1099's?

There seem to be conflicting opinions on whether small, non-professional landlords (such as those of us who, for example, rent out our garden apartment) are required to file Form 1099’s when hiring an independent contractor to perform work in excess of $600 on the rental property.  I know this is a question that will ultimately require professional accounting/legal advice, but I wanted to pose the question to this community to see if there are any small landlords out there who actually file 1099’s.  Do any of you issue a 1099 every time, for example, you hire a plumber to do repairs costing more than $600?  Thanks in advance for your input.

brooklynny

in Landlord 12 years and 6 months ago

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slopegirl | 12 years and 6 months ago

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no but we hire people who are part of companies for big jobs like plumbing

Bklnite | 12 years and 6 months ago

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I spoke to an accountant about doing tax returns for a small apartment building and his advice was that because the IRS is cracking down we should file a 1099 for any self employed contractors we paid more than $600\. It’s not required if you pay a plumbing company, but if you hire Joe the plumber who works as an independant contracter it is. (Ended up going with a less uptight and much cheaper accountant and since then I try to get work over $600 done by companies, not self-employed contractors, to avoid the issue).

daveinbedstuy | 12 years and 6 months ago

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No.  Be sure you know what you can expense vs. what you should (or want to) capitalize into the cost basis.