1099 issuing

[JenMO]

Client is building a business structure, not finished at the end of 2015, that will be put into service in 2016. He has paid some labor expenses, but isn't deducting them or capitalizing this year. Does he still send a 1099 for money he isn't using as a deduction?

[ATSMAN]

Client is building a business structure, not finished at the end of 2015, that will be put into service in 2016. He has paid some labor expenses, but isn't deducting them or capitalizing this year. Does he still send a 1099 for money he isn't using as a deduction?

If he paid in 2015 $600 or over then he needs to send 1099 to the recipient. Hopefully he had W9 signed.

[RitaB]

Yes

Client is building a business structure, not finished at the end of 2015, that will be put into service in 2016. He has paid some labor expenses, but isn't deducting them or capitalizing this year. Does he still send a 1099 for money he isn't using as a deduction?

Yes. I suppose you could enter the amounts under contract labor, then back them off on p. 2 with an explanation. It might seem more logical to the client, too, when he looks at the return. Just a thought.

[taxea]

I agree with yes. He can add them to setup costs for when he opens the business.

[JenMO]

Thanks, my thoughts, too