Question:
Contractor refuses to give me his SSN to issue him a 1099?
gooddffella
2013-03-25 12:11:07 UTC
HVAC installer is not giving me his SSN and he hasnt given an invoice either. I have paid him via check, can I use the copy of the checks to deduct this on the taxes?
Six answers:
2013-03-25 13:03:36 UTC
No, you capitalize repairs on a rental or investment property for an HVAC installation and depreciate it. Only small repairs on a rental are expensed.



You send him a certified letter asking for it. If he doesn't give it to you you send a copy of the letter and a 1099 in to the IRS without the number. See the link.
Bostonian In MO
2013-03-25 14:28:38 UTC
The Ehow link is incomplete. If you don't have the recipient's TIN, you are required to withhold 28% for taxes and include that on the 1099-MISC. You have to boost the amount paid to cover the tax (divide by .72 to get the correct total) and report that as non-employee compensation in box 7 and then show the 28% for taxes in box 4. You must remit that 28% to the IRS.



There are several other things to keep in mind. If the installer is a corporation, a 1099 is not required. You should send him a Form W-9 and ask him to complete it and return it. If he claims to be a corporation then you don't prepare a 1099-MISC. If he refuses to submit the W-9, you proceed as noted above.



Copies of paid checks are not sufficient. You need to substantiate the expense with invoices, paid receipts, etc. They must clearly detail what was done, when it was done, and the total cost.



An HVAC installation is a capital improvement. It becomes part of the property and is depreciated on the same schedule as the property is -- 27.5 years for residential and 39 years for commercial. You can expense any unclaimed depreciation at disposal time when the system is replaced if it lasts less than that number of years.



For future reference, always insist on a completed Form W-9 before making ANY payment. No W-9 = no payment. No exceptions. That is enough to motivate most to comply with the law. Also insist on a signed contract that outlines all work to be done and a firm price quote up front. Again, no contract = no payment. No exceptions. If there are any contract mods or up-charges, these must be documented. Finally, no payment without a detailed invoice. No invoice = no payment. No exceptions. This applies to any initial deposit, any progress payments, and the final payment.
morter
2017-02-22 09:22:16 UTC
to repair this, your customer will ought to ramp up the 1099-Misc to contain 28% withholding, effectively giving the handyman a 40% strengthen. examine the rebellion act on your customer--she ought to have withheld fee until she had the executed W-9 in hand.
tro
2013-03-27 15:09:36 UTC
was this something installed in your home? it is not deductible(and never was)

did you give him a W-9 to complete? it is entirely possible his company is incorporated and is not required to be issued a 1099

'these investments"? a rental?
?
2013-03-25 12:14:10 UTC
Sure. Issue the 1099 anyway and write "refused" where the SS goes. Is he an illegal?
?
2013-03-25 12:36:17 UTC
Ask your tax person what you need to get or what you can do. But, home improvements are not write-offs anymore.


This content was originally posted on Y! Answers, a Q&A website that shut down in 2021.
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