November 26, 2020

1099 Misc Instructions 2021

1099 Misc Instructions 2021 can you 1099 a contractor yes you can and guess what you are supposed to we're gonna tell you how that's today's episode let's dive into it hey everyone I'm Natali Morris and I'm, Clayton Morris sorry for that pause there the dramatic pause we are longtime real estate investors we buy properties and hold. Them for the rest of our lives that's the goal so that we can build financial freedom passive income and cash flow and that's the whole.

Purpose of this channel is to help.

You build financial intelligence and guess what it's tax time yes it is sadly that's, the case it's always a time of pain in my house but yeah that's the purpose of this channel not only do we tell you how to acquire real estate but we want to talk, to you about how to be good business owners inside your house so when you become a. Real estate investor now you own a business right. When you own a business you got a due tax time and you might as well do it well I guess what all these 1099s are gonna start flowing to. You yeah because look one thing I want to, say on this channel from now on is that you are not in the easy you're not in the easy form IRS film you can turbo tax anymore. No you are real estate investor you are now putting on your big-boy pants your big girl pants okay and so 1099s are gonna be part of.

This game and if you google can you 1099 a contractor you're gonna find people that don't know what. They're talking about right, so we want to talk to you about issuing 1099 s when 1099 s come to you that's a different thing but now that you own a business you will be paying.

People to do services as contractors right so let's say Clayton he looks so much like a handyman today so let's pretend he's my, plumber can I fix your pipes that's that's good funny joke okay so Clayton the plumber uh-huh has agreed to. Do a job on my real estate investment for over six hundred dollars if I take him less than six hundred, dollars I don't really. Have to 1099 him that's the threshold where the government says we want to know about it right under that you don't have to still a good practice to do it and I'll talk, about why later but Clayton's gonna say okay this pipe job mm-hmm right Vic Koss right, it cost this is gonna cost $900 $900 is the cost and I say great price Clayton's plumbing I agree Clayton does the plumbing I send him a, check out of my LLC bank account or with my LLC credit card I. Make the payment right and he gets paid $900 now at the end of the year I want to tell the government I paid Clayton's plumbing, let's say he did a few jobs that ended up to, save $5,000 right she really liked my plumbing work I like she kept calling me to come back and so now I need to tell the government that, I paid him $5,000 right right so this is a notice. To the government that who's gonna pay taxes on that $5,000 who I'm just the plumber don't look at me you are going to pay taxes on that, $5,000 and this is an.

Idiot you know it's absolutely true and guess what a lot of people you know they want to be paid in cash or, they want to do all sorts of different things no look you as a business owner your real estate investor you have. This business credit card now you should be using that so you can get rewards points by the way we have a link up to one of our favorite rewards points, credit cards below you've got.

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