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Our condominium Home Owners Association is a Federal and State recognized organization as I believe all HOAs are. My question: When we hire a contractor to do work (electrical, HVAC, plumbing, lawn maintenance, etc.) on the common areas of our property (halls, parking lots, sidewalks, etc.) are we required by the IRS to send these contractors a 1099 at the end of the year?

Thank you,
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Our condominium Home Owners Association is a Federal and State recognized organization as I believe all HOAs are. My question: When we hire a contractor to do work (electrical, HVAC, plumbing, lawn maintenance, etc.) on the common areas of our property (halls, parking lots, sidewalks, etc.) are we required by the IRS to send these contractors a 1099 at the end of the year?

This is something that I left out of my original post
It seems that this situation would be like any homeowner having work done on their house, such as siding or windows, would have to send a 1099 out to the business/contractor that did the work. Am I wrong in my thinking?
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Are you hiring the person as a direct employee? Or are you (more likely) contracting his business to perform a specific job or repair? In my mind, you're hiring the business, not the employee. No need for a 1099.
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Are you hiring the person as a direct employee? Or are you (more likely) contracting his business to perform a specific job or repair? In my mind, you're hiring the business, not the employee. No need for a 1099.

There are exceptions for businesses which are corporations, it is not safe to assume that all businesses would be exempt from 1099s.
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It seems that this situation would be like any homeowner having work done on their house

An HOA is a business. It is not the same as an individual having work done on their home.
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An HOA is a business. It is not the same as an individual having work done on their home.

What business does it conduct except to take of the common areas for no profit. Is it defined by the IRS as a business?

Thank you
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My question: When we hire a contractor to do work (electrical, HVAC, plumbing, lawn maintenance, etc.) on the common areas of our property (halls, parking lots, sidewalks, etc.) are we required by the IRS to send these contractors a 1099 at the end of the year?

Yes. The HOA is considered to be in business and is therefore required to send 1099's for any non-employees the HOA hires.

--Peter
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What business does it conduct except to take of the common areas for no profit. Is it defined by the IRS as a business?

For 1099 purposes, a profit motive is not required of the organization paying for the services. Pretty much any organization will need to file 1099s when hiring non-employees. Including non-profits like HOAs and churches.

--Peter
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For 1099 purposes, a profit motive is not required of the organization paying for the services. Pretty much any organization will need to file 1099s when hiring non-employees. Including non-profits like HOAs and churches.

--Peter


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Thank you Peter. That cleared up things for me.

Regards,
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What business does it conduct except to take of the common areas for no profit. Is it defined by the IRS as a business?

Non-profits are considered businesses. Check your HOA paperwork. It is probably a non-profit corporation.
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Our HOA takes care of all paper work concerned with work in common areas . Are you responsible to get the work done ??
Karen
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