Discussion:1099 for Service and Equipment

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Discussion Forum Index --> Basic Tax Questions --> 1099 for Service and Equipment
Discussion Forum Index --> Tax Questions --> 1099 for Service and Equipment

CAR (talk\|edits) said:	22 January 2008
I have a vendor from whom I purchase computer equipment as well as pay for computer support and monitoring. can I issue the 1099 for all payments or do I have to take out the equipment and software purchases?

Wakerles (talk\|edits) said:	23 January 2008
I would record the entire amount of money paid to the vendor. If the company is a corporation, I believe you are not required to file the form. You may want to ask the vendor to fill out a W-9 for the information if you don't have it yet.

Tfortaxes (talk\|edits) said:	24 January 2008
Wakerles is correct. You do not issue 1099's to corporation or partnerships. The computer equiptment is listed as a fixed asset and depreciated or 179 to the number of your choice based on income. Typically if someone is working out of a store front you do not give them a 1099. Your purchases are fixed assets and your service is repairs.

TheTinCook (talk\|edits) said:	24 January 2008
Dude, you need to issue 1099's to partnerships. However, you need not report payments for merchandise. Payments for services are generally reportable. Whether or not the payee has a storefront is immaterial.