I am self-employed and I'm trying to wonder if I have to file a 1099-MISC to the IRS because I rented from someone a salon space for my business. Do I send a 1099-MISC to the person that I rented the space from? But I kind of think that a 1099-MISC is somewhat like a W-2. Am I right? I'm not really sure. Any help would be appreciated..... I already check www.irs.gov website already and that didn't really help.
2007-03-15 16:56:28 · 9 answers · asked by vathnaly 1 in Business & Finance ➔ Taxes ➔ United States
No, no, no. You do not send anyone else a 1099 if you rented a chair. That is a deductable business expense for you as a self-employed person. If the salon paid you any money for your services, that is probably coming as a 1099, but you can still deduct what you paid for the rental, plus supplies, uniforms, advertising, etc. You might want to meet with an accountant to learn about the appropriate deductions so you don't miss any. As a self employed person you will be paying higher social security rates and your own medicaid, so you want every deduction you can get.
2007-03-15 17:03:44 · answer #1 · answered by Anonymous · 2⤊ 1⤋
As a business owner, you must send 1099-MISC to anyone you paid at least $600 during the previous year who provided you with personal services in exchange for your money. This would be like helpers and might include the salon owner, but only UNINCORPORATED recipients. You don't send 1099's to corporations or partnerships. If you buy $1000 worth of goods from an individual for resale, you also don't send a 1099 since goods are not labor.
2007-03-16 00:55:28 · answer #2 · answered by WealthBuilder 4 · 0⤊ 0⤋
You should issue a 1099 to the individual (unless they are incorporated) if you paid more than $600 in rent. You would also have to file a 1096 and 1099 with the IRS. You would be able to deduct rent as a business expense.
2007-03-15 17:06:46 · answer #3 · answered by tma 6 · 0⤊ 0⤋
You don't use a 1099 misc for rent that's goes with the taxes you file, a 1099 misc is for like contact labor you need to contact an accountant
2007-03-15 17:05:35 · answer #4 · answered by Mistical 2 · 0⤊ 1⤋
It's a bit late for this - given the 1/31 deadline, but yes, typically, if the rents are substantial you would send a 1099-misc for rents. There is a special box on it just for rental income. BUT, if the salon is a corporation, it is not necessary to 1099 them. For now, I would just make sure you can prove that you paid them rent, have a rental agreement in writing, copies of the checks you wrote, bank statements, etc., in case you get audited down the road. You will be deducting the rents you paid them on your schedule C when you file your taxes, so make sure you have the documentation to back it up!
ps. - go ahead and deduct the rent you paid on your taxes - just make sure you can prove you paid it....
Hope this helps!
2007-03-15 17:04:30 · answer #5 · answered by Jennybobenny 4 · 0⤊ 2⤋
You don't have to send them a 1099-MISC. They're in business and must claim the payments from you as business income though. They're responsible for keeping records on how much they received, and filing their taxes accordingly.
2007-03-15 17:13:40 · answer #6 · answered by Judy 7 · 0⤊ 2⤋
IRS did not help because this is completely wrong.
1099 is for independent contractor work, not rent or any other expense. You don't send W-2's to landlords either.
2007-03-15 17:14:14 · answer #7 · answered by Anonymous · 1⤊ 2⤋
A 1099 is for INCOME paid to someone for services rendered. Not rent.
2007-03-15 17:01:57 · answer #8 · answered by Lisa A 7 · 1⤊ 3⤋
Ask your tax preparer although I believe you are correct as it is income for the lessor and is deductible on schedule C as a business expence .
2007-03-15 17:11:39 · answer #9 · answered by (A) 7 · 0⤊ 0⤋