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I hired quite a few subs last year (yes they were actual subs) and now doing my taxes remembering that I'm supposed to send them each a 1099. But then I realized that I'm a contractor and my clients should technically be sending me a 1099 for every job, which never happens. And I've also subbed for other companies and never get a 1099...so am I missing something? Do people really do this? Seems like a pain just thought I'd ask and see what you all do about it.
 

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If you are a corporation, nobody is going to 1099 you. Any of your subs that are Corps aren't going to get a 1099 from you either. When you say "client" does that mean homeowners? Because they aren't going to 1099 you either. So basically you need to send 1099s to any of your non corp subs by the end of the month.

If you do your own bookkeeping you can grab a 1099-Misc tax kit from Adams at Staples. It has an online software that will guide you through it, then you print the 1099s as instructed and send the various copies where they are supposed to be sent. Then you file a 1096 with the IRS.
 

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Seems like we're fast approaching the point where to succeed as a gc we would be better off with a background in accountancy or law rather than hands-on experience in a trade. Or are we already there and I simply missed it?
 

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Seems like we're fast approaching the point where to succeed as a gc we would be better off with a background in accountancy or law rather than hands-on experience in a trade. Or are we already there and I simply missed it?
No joke.
 

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Seems like we're fast approaching the point where to succeed as a gc we would be better off with a background in accountancy or law rather than hands-on experience in a trade. Or are we already there and I simply missed it?
Way past that point; the amount of financial risk and liability that we are exposed to on a daily basis can be extreme and most are clueless.
 

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Either that or they just 1099 everyone so they don't have to think too hard about it. No harm done but not necessary.
I've always just assumed it's a double check system for the IRS to ensure that earnings are getting reported.

If you send a 1099 it takes your liability out of the equation and now it's on the guy you paid to make sure he's claimed that money.

I get a few of them each year, I just give them to my CPA, as all the money I get from work goes right into the account and subsequently recording in quickbooks anyway.
 

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I've always just assumed it's a double check system for the IRS to ensure that earnings are getting reported.

If you send a 1099 it takes your liability out of the equation and now it's on the guy you paid to make sure he's claimed that money.

I get a few of them each year, I just give them to my CPA, as all the money I get from work goes right into the account and subsequently recording in quickbooks anyway.
It is but it's not necessary to send one if a business is incorporated. I am sure if the IRS sees some big $ on a 1099 they pull it for an audit.
 

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Seems like we're fast approaching the point where to succeed as a gc we would be better off with a background in accountancy or law rather than hands-on experience in a trade. Or are we already there and I simply missed it?
Both those subjects are treated very seriously on the exam here in FL, a whole day is devoted to it.
 

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Seems like we're fast approaching the point where to succeed as a gc we would be better off with a background in accountancy or law rather than hands-on experience in a trade. Or are we already there and I simply missed it?
I often consider closing the doors and going underground, work alone, work for residential folks that pay cash. It's become so time consuming to run a small legal business and still make a living. Lawyers, accountants, insurance companies, licensing it's crazy the amount of time and money we spend just to stay in business.
 

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If a customer operates a business out of the home, they sometimes require work on their "office" or other building on the property where they conduct business. If that work totals more than $600, they can 1099 you. Have had that happen a number of times.
Keep good records, make sure what you billed is the same as what they 1099'd.
 

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I often consider closing the doors and going underground, work alone, work for residential folks that pay cash. It's become so time consuming to run a small legal business and still make a living. Lawyers, accountants, insurance companies, licensing it's crazy the amount of time and money we spend just to stay in business.
The only problem with this scenario is that when you have a problem whether with a liability or a tax issue you have a big problem. Plus how much work can you do solo? Perhaps a handyman business if you can survive on the money you'll make.
 

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The only problem with this scenario is that when you have a problem whether with a liability or a tax issue you have a big problem. Plus how much work can you do solo? Perhaps a handyman business if you can survive on the money you'll make.
Most guys who do it have a "day job."
 

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Most guys who do it have a "day job."
Day job or not, when a pipe bursts, a fire starts or their "helper" gets hurt they are getting sued. And the owner who was looking for a bargain is no longer their friend. I would not do any type of work without all necessary licenses, permits, contracts and insurances in place.
 

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A long time ago when I was young and a bit naive I was working for a pool installation company. Toward the end of my time there they asked if I would like to subcontract. I built a few pools as a sub and decided to move on and moved to a different state.
I never received a 1099. Probably because they did not have my address. I am sure they filed a 1096 because about 3 or 4 years after I left I got a bill from the IRS for a few grand. Ouch. Most of it as I recall was penalty.
My new fiancé was pissed. She was like what the fu ck is this...can I trust you? LOL
Anyway....live and learn.
 

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Day job or not, when a pipe bursts, a fire starts or their "helper" gets hurt they are getting sued. And the owner who was looking for a bargain is no longer their friend. I would not do any type of work without all necessary licenses, permits, contracts and insurances in place.
I'm not making a value judgement, just saying.
 
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