Clarify 1099s

[JPROSBALLC]

Hi you lovely tax gurus,
It's that time of year when the confusion of 1099s hit hard. My recent 'tete to tete' with a colleague leads me to post...
1st It is my understanding 1099-NEC is for Non Employee Compensation. It is noted on the IRS site that this could include payment for materials and parts. The key is they are not your employee. If you rented equipment for the non-employee to operate, the payment for the rental is posted 1099-MISC box 1 (assuming $600 or more).

2nd - If you paid for these items using a credit card, you are not required to issue a 1099.
Do payments using your Debit card fall into this category? I believe debit cards fall under "third-party network transactions" and are not subject to reporting on 1099-NEC/MISC.

Thank you in advance.

[TaxGuyBill]

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1st It is my understanding 1099-NEC is for Non Employee Compensation. It is noted on the IRS site that this could include payment for materials and parts.

If you rented equipment for the non-employee to operate, the payment for the rental is posted 1099-MISC box 1 (assuming $600 or more).

2nd - If you paid for these items using a credit card, you are not required to issue a 1099.
Do payments using your Debit card fall into this category?

Yes.

Yes, but most of the time the company renting out equipment will be taxed as a corporation so no 1099 would be necessary.

Yes.