Quote:
Originally Posted by article
i had a contractor do work on a rental property i own out right. I paid him $6,500.00 to do a complete rehabb. Am i responsible to send him a 1099 in order to write the 6500.00 off of my taxes. If so what is my dead line in getting the 1099 to the contractor. There is a signed contract for the work.
Thank you
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depends what was done, rehab is not always a repair , it may be a capital improvement item in which case it becomes part of your cost basis and becomes part of your depreciation. renovations are generally capital improvements and not tax deductions like a repair..