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Gracie1975 02-02-2008 04:15 PM

Taxes
 
I've gotten conflicting information on this.

We hired a contractor to do some work at our house...to the tune of $15,000 labor.

Do I need to issue him a 1099 or not?

Sammy 02-02-2008 04:21 PM

Is he a licensed contractor in business or somebody that just did some work for you?

Gracie1975 02-02-2008 04:40 PM

He's a contractor...not licensed. There isn't a licensing requirement in Illinois excpet for electrical and plumbing as far as I understand.

He is listed in the phone book under home remodeling and contractors.

He built a 14X28 foot addition and put windows and siding on the entire house.

Sammy 02-02-2008 04:54 PM

Since he is listed in the phone book I would assume he has a business license. As a private citizen paying him for a specific contracted serivce, I cant see where you would need to issue him a 1099.

nap 02-02-2008 06:40 PM

Quote:


Trade or business reporting only.
Report on Form information.
1099-MISC only when payments are made in the course of your
trade or business. Personal payments are not reportable

.

from the IRS' website.

and some more:
<LI class=lstTip>
Quote:

Do not send a 1099-MISC to someone when you have made a personal payment to him. An independent contractor to whom you have made a personal payment unrelated to your trade or business does not receive a 1099-MISC.

LawnGuyLandSparky 02-03-2008 02:41 PM

I thought if you paid his BUSINESS; check to "ABC HOME IMPROVEMENT INC" no 1099. If you paid HIM directly "Write a check to Joe Jones" he gets a 1099.

jerryh3 02-03-2008 02:52 PM

Quote:

Originally Posted by LawnGuyLandSparky (Post 94594)
I thought if you paid his BUSINESS; check to "ABC HOME IMPROVEMENT INC" no 1099. If you paid HIM directly "Write a check to Joe Jones" he gets a 1099.

The only reason you would have to 1099 someone is if it was a business expense, i.e. general paying a sub. Personal transactions (homeowner to contractor) are not 1099ed because it is not a business expense.

nap 02-03-2008 03:01 PM

Quote:

Originally Posted by LawnGuyLandSparky (Post 94594)
I thought if you paid his BUSINESS; check to "ABC HOME IMPROVEMENT INC" no 1099. If you paid HIM directly "Write a check to Joe Jones" he gets a 1099.

please see post #5. It is from the IRS' website.

Gracie1975 02-04-2008 04:20 PM

Thanks Nap! Much appreciated!! :thumbup:


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