Tax time is upon us once again. If you flip homes heavily for profit or have a lot of property maintenance hired out, then pay attention to how you pay and file taxes. IRS law states that anyone you paid for labor or contracted laborer, you must give them a W-9 so they can fill it out and turn in to you so that you will have their Tax ID. This important information you need so you can fill out a 1099 form for them come income tax time. Anyone you paid $699.00 or more you must give them a 1099 by February 1st. And then any corrections will need to be corrected and resubmitted by February 15th. Make your work load lighter and easier for you. I always give a W-9 form out in the beginning of a job or year in case you use them over and over or the first job is over the $699.00 amount, cause it is no fun trying to track people down at the end of the year.
Success in your homes,