Submitted By: Virginia
Answered: June 8, 2015 8:08 am

I own a home that I rent out. I had a contractor do some repairs in 2014. Do I have to issue a Form 1099 to him?

A Form 1099-MISC is required to be issued only by a business that pays $600 or more to an independent contractor. If your rental activity is only an investment and not a business, you don’t have to issue a 1099. (There has been a law change several years ago that would have required investors to issue 1099s, but that law never went into effect and was ultimately repealed.)

Tax Glossary

Capital gain or loss

The difference between amount realized and adjusted basis on the sale or exchange of capital assets. Long-term capital gains are taxed favorably. Capital losses are deducted first against capital gains, and then again up to $3,000 of other income.

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