The 1099-NEC (Non-Employee Compensation) is an IRS form used by business owners, including house flippers, to report payments made to independent contractors for their services. It allows the IRS to track income earned by contractors who are not on your regular payroll.
Who is required to receive one?
Generally you must issue a 1099-NEC if you paid a vendor $600 or more during the tax year, provided they are an independent contractor rather than an employee, and they are an eligible entity such as an individual, sole proprietor, partnership or LLC.
How FlipperForce helps
The Vendor 1099 Report scans your entire workspace for the tax year and aggregates payments by vendor across every project, so you do not have to add up receipts from different houses by hand.
FlipperForce does not provide tax advice. Confirm your filing obligations with a certified tax professional.
Read the full article: What is a 1099-NEC and what is required by real estate investors?