1099's for LLC and personal interest

[drtaxprep]

A client has a vacation rental listed as an LLC that he materially participates in. He also has another home he purchased and is fixing up to rent or sell, which I will refer to as "in process". In process home was not available to rent at the end of 2018. He had a subcontractor do work in both homes last year, the home that is in process will not be listed under the LLC until rentable.

Should two 1099's be issued, one for the LLC and one for the work done on the other home?

All money for in process home is a personal investment for him, would the 2nd 1099 be issued from his personal name?

He will not be able to take any deductions for in process home this year due to unavailability, most if not all improvements made in 2018 will be added to his basis. I am confused on how this should all lay out on paper.

[kathyc2]

i don't understand why someone would buy a house and title it in their name, when the intention is to title it to LLC name later. As far as where the 1099 should come from, it should be from the entity that made the payment. If payment was from LLC bank account, that would be who would issue the 1099. If it came from personal checking, that is who should issue 1099.

[drtaxprep]

Thank you Kathyc2, I asked the same question, client has home in personal name due to personal collateral required to purchase home. It was a bankruptcy in bad enough shape they could not get financing on the home. I will have to verify but sounds like they have been putting personal money through the LLC account to finance the remodel.