Ask Experts Questions for FREE Help !
Ask
    akmariner's Avatar
    akmariner Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jan 25, 2010, 02:00 PM
    Should I give a building contractor who helped our business with remodel a M-1099
    When we remodeled our business facility, we hired a contractor to do certain jobs (drywall, taping, mudding, some framing, etc.). He billed us with an invoice for the number of hours he worked and for the materials he needed. Should we give him a M-1099 and deduct him as contracted wages or depreciate the cost of the labor along with the rest of the remodel costs?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Feb 8, 2010, 02:44 PM
    You have to depreciate the cost of the labor as a part of the whole costs of the improvement.

    If the contractor was a sole proprietor or a partnership, or a LLC under the sole proprietorship or partnership form, you need to generate a Form 1099-MISC for the money paid to him/her for the work.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #3

    Feb 9, 2010, 01:04 AM

    You must generate 1099-misc if amount is $600 or more. Also you must file it with IRS. For IRS you can not used downloaded 1099-misc. Get from IRS or Office supply shops. http://www.irs.gov/pub/irs-pdf/i1099msc.pdf
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

What is the IRS fine ($) for not 1099 getting a 1099 from a contractor? [ 3 Answers ]

I know a 1099 is needed for anyone paid over $600, but what if, for argument sake, one cannot 1099 the contractor because they refuse or don't have a SS#, etc. What are the penalties for this beside not being able to expense the transaction? What does the IRS do?

Movie search for a boy who helped three people and each person helped another three [ 5 Answers ]

Hey I'm looking for a movie title for a movie about a boy who's teacher gave the class a project to do something to change the world so the boy decided to help three people and ask each one of those people to help three people and the chain continued and towards the end the boy died

How do I become a 1099 contractor? [ 1 Answers ]

I live in New Hampshire and have recently been hired as a 1099 contractor for the job of my dreams. I earned money last year, 2007, as a 1099 contractor but would like to make it official so I can put money into Social Security and cover myself legally. How do I become a 1099 contractor in...

1099 for contractor [ 1 Answers ]

Here is the situation. 1. Company "ABC. Inc", a S corporation has performed service to another company "123, Inc". 2. ABC company send invoice to 123 company for the service. 3. ABC company asked 123 company to issue the check to the individual name of the ABC company's officer, owner. ...

View more questions Search