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years ago that would have required investors to issue 1099s, but that law never went into effect and was ultimately repealed.)

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Tax Glossary

Real estate investment trust (REIT)

An entity that invests primarily in real estate and mortgages and passes through income to investors.

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