<Steve> 82 Report post Posted August 21, 2011 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. Share this post Link to post Share on other sites
pilot76180 51 Report post Posted August 21, 2011 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. Share this post Link to post Share on other sites
Dave T 0 Report post Posted August 21, 2011 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. Share this post Link to post Share on other sites
pilot76180 51 Report post Posted August 21, 2011 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. Share this post Link to post Share on other sites
<Steve> 82 Report post Posted August 21, 2011 The Rep(s) is a sole proprietor that answers my question. Thank you! Share this post Link to post Share on other sites
lhenley 8 Report post Posted August 22, 2011 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. Lynn (FL) Share this post Link to post Share on other sites
<Steve> 82 Report post Posted August 22, 2011 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. Share this post Link to post Share on other sites