1099 for a commercial job?

[caddy0291]

I have a client that wants to 1099 me this year for cutting 2 lots once a week, is this right? I was thinking I would be paying tax twice if I deposit it in a business account and get 1099?

[SECTLANDSCAPING]

Lawn care business tips

I dont get what you mean. A 1099 form just says what your paid by the company. Theres no taxes taken out. 1099 are required by almost every commercial job.

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[stevef1201]

I get several every year, it's no big deal. It just their way of being able to write off their business expenses. Take it say thank you and keep on keeping on.

[dpld]

as long as you were claiming the income anyway it is no big deal and really has no affect on you and your taxes.
whenever i have got them in the past i would give them to my accountant and he would ask me if the money was already included in my cash receipts and being it was he just about threw it away.

the only possible way that the 1099 could be a issue for you is if you were planning on not claiming that income but other then that just like steve said, just keep on keeping on.

[Billy Goat]

Is this a good selling point when quoting a job for a small business owner. Stating that 1099's are optional. Would this weed out some of the low ballers. Iam not sure what are the guide lines for small business owners deducting a lawn care service contract on their taxes.

[dpld]

Originally Posted by Billy Goat

Is this a good selling point when quoting a job for a small business owner. Stating that 1099's are optional. Would this weed out some of the low ballers. Iam not sure what are the guide lines for small business owners deducting a lawn care service contract on their taxes.

there is no selling point. all the 1099 represents is the business issuing it is making a account of all the money they spent.

he may not have had all the information he needed to justify the expense as a typical hiring of a outside contractor.

he may not have had a receipt, or a formal contract as well as some states require that you send a 1099 to all outside services over a particular dollar amount.

if landscape maintenance costs are deductible for a business owner which i would gather is a legit deduction it will not make any difference whether you took a 1099 or not.
the deduction would not revolve around what you do it would revolve on what he did.

if you are a legit business and you claim all the money you make a 1099 don't mean didly because you already reprted that income and have the paper work to back it.
it only becomes a issue if you planned on not reporting it because the 1099 let the cat out of the bag.

i know we all like to swing a cash deal from time to time but as a general rule any business to business transactions as well as any transactions by way of check or credit card should all be done on the up and up with all the proper documentation and receipts.

[willshome]

Originally Posted by Billy Goat

Is this a good selling point when quoting a job for a small business owner. Stating that 1099's are optional. Would this weed out some of the low ballers. Iam not sure what are the guide lines for small business owners deducting a lawn care service contract on their taxes.

I get some jobs because it's a tax write off if they use a real business (receipt & deposited into a business bank account) I put licensed and insured on ever ad. When talking to a customer that is a small business owner I remind them that even small jobs should be done by a pro. Why pay a tenant $20 cash to shovel a walkway when you can add it to plow for $30 and it's a write off & you know it will be done on time....

[Steve]

In the past on here, we have seen some lawn care business owners get paid all year from a commercial client and were not planning on paying taxes on that money. At the end of the year, they got a 1099 from the customer and realized they were going to have to pay taxes on that money at that point and totally freaked out.

Ultimately, if you pay taxes on all your income in the proper manner, it does not matter if you are given a 1099 form or not.

[jsslawncare]

Sounds like you need an accountant.

[PR-Fect]

Originally Posted by Steve

In the past on here, we have seen some lawn care business owners get paid all year from a commercial client and were not planning on paying taxes on that money. At the end of the year, they got a 1099 from the customer and realized they were going to have to pay taxes on that money at that point and totally freaked out.

Ultimately, if you pay taxes on all your income in the proper manner, it does not matter if you are given a 1099 form or not.

Agreeed. If you play it straight, pay your income taxes, and sales tax if your state has them you have no worries. We often get 1099's from our coustomers after we allready paid the tax on that amount. We also often get asked for our E I N also. Some customers accountants are very anal.