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Old 02-23-2009, 05:54 PM
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Need to issue a 1099 to maintenance men paid for rental property repair

Hi there,

I was reading another post and it got me thinking - my husband and I own a rental property. We are reporting our income/expenses for it on a Schedule C (I think it's a schedule C!) where we are deducting repair expenses (both labor and materials) for the property.

Do we have to issue 1099s to these repair men if we paid them over $600? Does it matter if they were a licensed company vs an independent handyman? Typically these are "side jobs" for people who I"m guessing aren't going to want to claim the income, but does that mean that I can't deduct the labor expense if I don't issue a 1099?

Thanks!!



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Old 02-23-2009, 11:05 PM
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Generally speaking, the IRS does not require taxpayers to issue 1099-Misc to contractors or licensed handyman who are engaged in any renovation or repair work at the taxpayers primary residence. Thus, it matters not whether the repair person is a licensed company or an independent handyman. So, in your particular case, there is no need to worry about issuing a 1099-Misc to a licensed contractor who has performed some repair or renovation at your primary residence.

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Old 02-24-2009, 09:37 AM
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THanks for the reply. But what about if the work was done on a rental property from where we are reporting income? That's what I was asking about, not for work done on my primary residence - sorry if that was unclear.



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