 1099Misc Fed tx # (by Barbara [CT]) Mar 16, 2011 6:41 PM
 1099Misc Fed tx # (by Bill [TX]) Mar 17, 2011 4:25 AM
1099Misc Fed tx # (by Anny [PA]) Mar 17, 2011 7:23 PM
1099Misc Fed tx # (by Barbara [CT]) Mar 17, 2011 7:48 PM
1099Misc Fed tx # (by Barbara [CT]) Posted on: Mar 16, 2011 6:41 PM
Message:
State Specific Question About: CONNECTICUT (CT)
I own a two family and have always done a Schedule E for rental income. I plan on having work done that is going to be more than 600 so I know I have to issue a 1099 MISC. The thing I'm concerned about, it requires you to put down a Fed Tax ID and a Payees state number. Will this change how I have to file? I'm under the impression that getting the Fed ID # makes you a bonifide business and may take me out of the "passive activity" that I describe below.
I read on the internet that " Currently, only taxpayers whose real estate activities are considered (for tax purposes) to be a trade or business must issue 1099s; most of the 9 million plus taxpayers who own rental properties directly (that is, not through a partnership) are treated as engaged in a “passive activity”– not a business. (The reason for that oddity is that Congress doesn’t want taxpayers to be able to write off rental losses against their salaries or other active business income. Individual taxpayers can deduct a maximum of $25,000 in passive rental losses against nonpassive income and the $25,000 deduction is phased out as a household’s modified adjusted gross income rises from $100,000 to $150,000.)
Perplexed??????????? --69.37.xx.xx |
1099Misc Fed tx # (by Bill [TX]) Posted on: Mar 17, 2011 4:25 AM
Message:
Will this change how I have to file? No.
I'm under the impression that getting the Fed ID # makes you a bonifide business and may take me out of the "passive activity" that I describe below. - Not true. --198.208.xxx.xx |
1099Misc Fed tx # (by Anny [PA]) Posted on: Mar 17, 2011 7:23 PM
Message:
I thought I read on a post awhile ago that said you just had to have the SS# or the ID# of the person you paid. --75.75.xxx.xxx |
1099Misc Fed tx # (by Barbara [CT]) Posted on: Mar 17, 2011 7:48 PM
Message:
Okay here is the low down. You have to (for your protection) give them a W9. On this they supply their tax id or ss #. Now be careful...the name has to match EXACTLY whatever is attached to the ID #. If not you will get a letter back from the IRS. Then you have to sent the contractor a form to correct what is wrong. Without the W9 you have no proof it is his mistake.
The 1099MISC has to be sent in with a 1096. Both CANNOT be printed, you have to get them from the IRS (they are on carbon copy paper). It is worth googling this info because there are stiff fees attached for not doing it and any mistakes made on the 1099 or 1096. Total fees can run you as much as $350 for each incorrect 1099. --69.37.xx.xx |
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