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#1 <Steve>

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Posted 20 August 2011 - 08:16 PM

I assume I need to file a 1099-misc for using an Idenpendent Contractor as a Representative and they were paid $600. or more during the year.

Isn't this the new tax law that went into affect recently. :rolleyes:

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#2 pilot76180

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Posted 20 August 2011 - 09:17 PM

Yes, if you pay them more than $600, you will need to have them complete a W-9 and your CPA will send them a 1099 assuming you have a CPA doing your records and you tell them.
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#3 Dave T

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Posted 20 August 2011 - 09:53 PM

Steve,

When you say "independent contractor", we really need to know more. Is this independent contractor incorporated (whether as a C-Corp or an S-Corp) ? If not an incorporated business, is the contractor's business entity an LLC that is treated as a corporation for tax purposes (whether as a C-Corp or an S-Corp) ?

If the answer to either question is yes, then you don't 1099 corporations.

The following applies if the contractor worked for your real estate business.

If the contractor is a sole proprietor or a partnership (or LLC treated as a partnership), then you do need to issue a 1099 if the contractor was paid at least $600 during the year.

This has always been the rule. No new law recently enacted this. The recent health care legislation was seeking to expand the 1099 requirement even more, but those extensions were overturned.

If the contractor worked for you personally, doing work not related to your real estate business, then you don't issue a 1099.

#4 pilot76180

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Posted 21 August 2011 - 08:28 AM

Great info Dave!!
From previous communication I've had with Steve, I believe the contractor was structured as mine are, and are sole proprietress.
The same applies if they are a real estate agent that you are paying a referral fee to.
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#5 <Steve>

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Posted 21 August 2011 - 11:49 AM

The Rep(s) is a sole proprietor that answers my question. Thank you!

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#6 Lynn (FL)

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Posted 22 August 2011 - 01:33 PM

Correct me if I'm wrong, but this is not part of the new tax law. It's been this way for a long time. I think I received a 1099 for some "independent" work I did back in the 1980's.

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#7 <Steve>

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Posted 22 August 2011 - 02:49 PM

Yes, I think DaveT mentioned that this is not a new law. I just heard something about the $600. threshold a while back and was asking.

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