Question for Tax Experts

[barnbilder]

The form 1099 requirement, does that include livestock purchases? Anything above $600 requires a 1099, if you want to claim it as an expense. There are exemptions. Just wondering if this applies to breeding stock. I would ask my accountant, but he seems stressed out for some reason.

[KIT.S]

1099-MISC declares money you paid for labor in the course of your business. Not material objects, parts, cattle, hay. Just the labor you paid for. For instance, someone who came to wash your windows - if you paid them more than $600 for the calendar year, you'd give them a 1099-MISC. Or for someone who provided the labor to repair your roof, you would give them a 1099-MISC. If they also provided the materials, you can report the entire amount on the form (labor and materials), and they would show the materials as an expense on their tax return. But if you buy the materials separately, you don't give that person/company a 1099.

Also, if the company you hire is a corporation, you are not required to provide them with a 1099, unless it's an attorney.

Also, 1099's are due to the recipient (the person you paid) by January 31, and to IRS February 28.
Kit

[ET1 SS]

We document our livestock purchases/sales on a Schedule 'F'.

[barnbilder]

Thanks, that is what I gathered from the stuff I read from the IRS, but you can never be sure after reading it. I had hear some kind of rumor that they had changed it to include anyone you paid over $600 to, but I think that was just bad information. Always pays to read the IRS stuff, instead of listening to coffee conversations. Then you can at least frame your question in the right manner.

[Lazy J]

Originally Posted by barnbilder

Thanks, that is what I gathered from the stuff I read from the IRS, but you can never be sure after reading it. I had hear some kind of rumor that they had changed it to include anyone you paid over $600 to, but I think that was just bad information. Always pays to read the IRS stuff, instead of listening to coffee conversations. Then you can at least frame your question in the right manner.

This is why having a qualified Tax and Accounting Professional on your team is important. The "rumors" you have heard were addressed LAST year. Basically if you receive an invoice for an item then you don't need to provide a 1099, but there are exceptions to that.

Work with your accountant to ensure you send 1099's appropriately.

[rambler]

Yes, there was a huge brew ha ha on the 1099 stuff, but it sorta bypassed really meaning anything at this time....... It was a big thing coming tho for a time.

Paul