I paid a person about $12,800 for contracting work and fixtures but he refuses to give me a W9. I have sent him a registered letter. Do I have to file a 1099 given I am doing this from personal funds? When I try to sell the house I'm fixing up will I have a problem claiming against this expenditure? (I have receipts for most of the money). Advice?
Thanks! TimJowers
A client last year thought she had to send out 1099's in the same situation. And IF she had been doing this on a repetitive basis which would then indicate she was in a trade or business, of course she would have. But this was a one time affair and she'll never do it again, so results were reported as a short term capital gain and no
1099's were necessary. ChEAr$, Harlan Lunsford, EA n LABeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.