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1099's in a service business

Discussion in 'Business Fundamentals' started by IMAGE, Feb 1, 2009.

  1. IMAGE

    IMAGE Sponsor
    Messages: 1,741

    Hey guys, I know I will need to ask my tax guy, but wanted to see if any of you might know this.

    Should I get a 1099 if? :

    • I do snow removal for an apartment complex?
    • I do snow removal for a business parking lot?
    • I do snow removal for a private home?

    I ask, because none of them are subcontracted. I am providing a service, just like the plumber. I doubt they 1099 the plumber?



    I do give a 1099 to some work that I sub out:

    • Snow hauling.
    • Snow plowing subs.
     
  2. Rc2505

    Rc2505 PlowSite.com Addict
    Messages: 1,245

    You most likely won't get anything from a private home owner. From an apartment complex, or a commercial business, you might, but you might not. I promise they will claim it on their taxes, but they may not send out a 1099 to you. I have some that do, and some that don't. To be safe I suggest you claim everything unless they pay you in cash with no paper trail.
     
  3. DPA763

    DPA763 Junior Member
    Messages: 2

    If they sent you a w-9 to sign and send back in they will probably send a 1099. They need to have the W-9 filled out first though.
     
  4. IMAGE

    IMAGE Sponsor
    Messages: 1,741

    Yeah I was just asking because one place asked for a w9, so I gave em one. I have 3 accounts with them, apartment, business, and home. Just wondering where the line is on what they can 1099 and what they cant. I know they will claim all expenses on thier taxes, as will I. Just courious if they would say; 1099 a towing company if they used them much, or the business that fixes the sprinklers? There must be a line somewhere on what is 1099'able, and what is just 'keep reciepts for in case of audit'.

    Of course I report everything on my taxes, I am trying to build a business growth history..., not trying to leave anything out.
     
  5. DPA763

    DPA763 Junior Member
    Messages: 2

    The apartment complex and the business - yes definately but the house I am pretty sure is a no because you are right, as a normal person not a business you can't 1099 for services done but as a business it is part of expenses.
     
  6. Rc2505

    Rc2505 PlowSite.com Addict
    Messages: 1,245

    Unless they are running the business out of the home, they can't deduct that money on taxes. However that means your going to have to give them an itemized invoice for each property seperatly. My guess is if your doing all three, then they will deduct the full amount that you bill them, and write it of as expenses.
     
  7. IMAGE

    IMAGE Sponsor
    Messages: 1,741

    I am doing all three seperately on different accounts with different invoices. They have been paying me for the home out of the same account they pay out of for the office on, with business checks, even though I told them they couldn't. If they 1099 the home account, do I refuse it, or what? They are a great customer, with nice accounts.
     
  8. Eronningen

    Eronningen Senior Member
    Messages: 442

    No don't refuse it. Why would you? Its there business and money, they'll do as they please. You are running a business and if you are not incorporated than you have 1099's coming for any work from the same business over $599.99.
    So what if they do 1099 for their residence? Unless you are trying to skip out on paying tax on monies than you'll be reporting those earnings anyways. This is a special circumstance, being that its tied into a corp. Home owners will never 1099 you unless they are operating a business/office out of their home and mostly not even than.
     
  9. Eronningen

    Eronningen Senior Member
    Messages: 442

    If you are inc. in anyway whatsoever they are not required to 1099 you.
     
  10. kmclawn

    kmclawn Junior Member
    Messages: 26

    A 1099 is only a recap of what your customer's business paid you. It is a paper trail for their records as to where their money has gone. I do work for the city, county and businesses and get a 1099 from most of them. I just give them to my accountant and let him deal with it. They aren't any big deal.
     
  11. Rc2505

    Rc2505 PlowSite.com Addict
    Messages: 1,245

    Unless your not looking to claim the money on your taxes, which is not a smart thing to do, take the 1099 and thank them for the buisness.
     
  12. LoneCowboy

    LoneCowboy PlowSite.com Addict
    Messages: 1,760

    taking or not taking a deduction is a matter of judgement.

    Not reporting income is a felony.

    report every dime.
     
  13. ogdenflooring

    ogdenflooring Member
    Messages: 92

    anything over $600 can be 1099'd