I just had a contractor blow up at me while asking for a W9 up front. Was very happy this happened before I did work with him. Ended up finding someone to do the job cheap enough to be under IRS W9 reporting limits anyway, so extra happy I didn't go with him.
There is obviously only one reason why someone would avoid filling out a tax form. Of course he doesn't want to pay taxes on what you paid him. That's why he was getting angry obviously. That's also one of the reasons why He said that he wouldn't have done work for you if he wouldn't known you were going to ask him to fill out tax forms. There are a lot of contractors who work under the table. Probably most.
I just send the 1099 to the address we have on file, some contractors call and complain I usually tell them I’ll ask my accountant and get back. Which I usually don’t. I been doing this for years, my company definitely takes the expense for repairs based on what was paid out. Don’t waste your time on w4/1099 discussions, contractors are notorious for not paying taxes on monies received. Push the liability on them by issuing 1099, your part is done.
Mandy, great video, your a role model to women out there running businesses. You have such a kind and trusting heart, be sure to check out some reddit property management threads to ask questions when you are unsure, so that the community can give you their POV from their vast experience.
Hey Mandy, do you have a check list for tenants that you use when screening tenants? I’m 26 and just bought my first 2 rental properties in Phoenix AZ. I’m getting ready to do interviews next week and curious if you have a video going over that. Thanks a bunch!
I have an old video on this topic. The quality of the video may be terrible though. It's one of the first videos I ever made. th-cam.com/video/PWOjwIIaong/w-d-xo.html
Wow that’s definitely a crazy learning experience. I do think he was trying to get paid under the table, but he put you in a bad position. Don’t feel bad, he’ll get over it, if not..oh well lol. Good video
the only thing is him explaining that to you would be him admitting he knew what he was doing and that could be used by the IRS. granted its hearsay but still.
Yes, usually. If their business is a LLC or a DBA, then yes. If they are incorporated, then no. I think all insurance companies are required to be incorporated. I believe attorneys are the one exception to the incorporated rule and you have to have a W-9 for them regardless.
Thank you for this video. I have a question for you Mandy. As an individual who owns a few rental properties, do I need to be asking for W9 from my contractors? Keep up the videos, I enjoy them very much.
Yea, Thing Number 1 is definitely under-reporting his income. The fact that he can afford to pay is taxes has nothing to do with whether he pays all his taxes. He works for individuals because most of them are not writing off payments to him on their taxes and reporting what they paid him on a 1099. What a jerk to try to make you the heavy.
wow you been doing this for years .. just now talking with a accountant 🤣😂🤣😂. .. perents house... you don't need to know about his taxes.. taxes is theft by the government!¡!!!
Hmm....My family has been managing a dozen+ properties for 20+ yrs, and go to a professional for our taxes. We've never asked for tax forms from any contractor or major work. We do keep invoices/receipts, particularly for major work, but we just give consistent estimations on 1040's. You might be turning away good contractors who do honest work for sake of extra administrative overhead.
You are way too nice Mandy. Don't like these contractors walk all over you. All you need is the contractors Tax ID number, name and address and you can create your own 1099 Form. Clearly they do not want to pay taxes so why are you arguing with them. Just file the 1099 on your own. Since your company size is so small it is highly doubtful that you will be audited. I am sure you can look up Tax ID numbers based from contractor license numbers.
I love the videos, and you have helped me alot. BUT you are very anal in your daily processes. This whole video is avoidable and the IRS is not that strict on follow ups, you are just very particular and frugal, its obvious watching your vids. I am in Real Estate investing (Flip & Rents) and manufacturing. Every " i " doesn't have to be dotted and t crossed in life. Relax you will live and not go to jail for every "little" thing. Just my opinion not trying to tell you what to do but trust me, most are not as extreme as you are. Go outside your perceived lines one day and discover you will still be alive in the morning and no swat team at your door...
Mandy your stories be the best 😭🤣🤣🤣
You handled this so professional and did everything correctly. That guy was trying to gas light you! I’m sorry you went through this. :(
I just had a contractor blow up at me while asking for a W9 up front. Was very happy this happened before I did work with him. Ended up finding someone to do the job cheap enough to be under IRS W9 reporting limits anyway, so extra happy I didn't go with him.
This guy might be a great carpenter but he definitely doesn't pay his taxes! Great video Mandy. I'm getting caught up on all your new videos in 2021.
hey Casey let's see your taxes🤣🤣😂🤣🤣. let's see them.. that's how he feels when you ask him about his W-9 ..
don't forget to ask about Trump's as well 😂🤣
Thank you for sharing your experience on this. Sounds extremely frustrating, hopefully you can get it cleared up.
There is obviously only one reason why someone would avoid filling out a tax form. Of course he doesn't want to pay taxes on what you paid him. That's why he was getting angry obviously. That's also one of the reasons why He said that he wouldn't have done work for you if he wouldn't known you were going to ask him to fill out tax forms. There are a lot of contractors who work under the table. Probably most.
Great learning experience, you are better for it. It should be easy now to avoid this type of situation.
I just send the 1099 to the address we have on file, some contractors call and complain I usually tell them I’ll ask my accountant and get back. Which I usually don’t.
I been doing this for years, my company definitely takes the expense for repairs based on what was paid out.
Don’t waste your time on w4/1099 discussions, contractors are notorious for not paying taxes on monies received. Push the liability on them by issuing 1099, your part is done.
Can you do a video about operating rentals as a business vs an individual? Pros/cons and why you chose to run as a business
It is technically a business and should always be treated as such!
Mandy, great video, your a role model to women out there running businesses. You have such a kind and trusting heart, be sure to check out some reddit property management threads to ask questions when you are unsure, so that the community can give you their POV from their vast experience.
I am learning so much. Thanks for sharing.
Thank you so much for sharing this experience! Your advice and experiences with your business have been super helpful!
I am so invested in this, that I am angry at these two jerks. I hope you find better contractors to work with.
Hey Mandy, do you have a check list for tenants that you use when screening tenants? I’m 26 and just bought my first 2 rental properties in Phoenix AZ. I’m getting ready to do interviews next week and curious if you have a video going over that. Thanks a bunch!
I have an old video on this topic. The quality of the video may be terrible though. It's one of the first videos I ever made. th-cam.com/video/PWOjwIIaong/w-d-xo.html
Thanks!!
Wow that’s definitely a crazy learning experience. I do think he was trying to get paid under the table, but he put you in a bad position. Don’t feel bad, he’ll get over it, if not..oh well lol. Good video
Yep I agree. He probably doesn't claim much income on his taxes.
the only thing is him explaining that to you would be him admitting he knew what he was doing and that could be used by the IRS. granted its hearsay but still.
If you are writing a check to their business name...do you need a W-9?
Yes, usually. If their business is a LLC or a DBA, then yes. If they are incorporated, then no. I think all insurance companies are required to be incorporated. I believe attorneys are the one exception to the incorporated rule and you have to have a W-9 for them regardless.
Thank you for this video. I have a question for you Mandy. As an individual who owns a few rental properties, do I need to be asking for W9 from my contractors? Keep up the videos, I enjoy them very much.
Uh yes it doesn't matter how many you own. From a business standpoint(which this is) you need to get the forms filled out.
I didn't know B2B issued 1099's.
Yea, Thing Number 1 is definitely under-reporting his income. The fact that he can afford to pay is taxes has nothing to do with whether he pays all his taxes. He works for individuals because most of them are not writing off payments to him on their taxes and reporting what they paid him on a 1099. What a jerk to try to make you the heavy.
The IRS sucks these days. They NEVER answer the phone.
Maybe he was doing the work "under the table"? So odd.
That was so obvious. Lots of ppl do that
The IRS can be very ruthless. You did the right thing 100%. There's just so many people who don't wanna pay their taxes and they will only be trouble.
wow you been doing this for years .. just now talking with a accountant 🤣😂🤣😂. .. perents house...
you don't need to know about his taxes.. taxes is theft by the government!¡!!!
Hmm....My family has been managing a dozen+ properties for 20+ yrs, and go to a professional for our taxes. We've never asked for tax forms from any contractor or major work. We do keep invoices/receipts, particularly for major work, but we just give consistent estimations on 1040's. You might be turning away good contractors who do honest work for sake of extra administrative overhead.
The IRS requires that 1099s be filed for any work done on rental properties that is over $600.
@@ItsMandy It depends on whether you're declaring your rentals as a business or an investment...
Tax laws. Too many to deal with. It wouldn't be a bad idea to learn tax law, or take some accounting classes on that.
Go led for lights. Btw...
Fly to interviews? Now I'm curious. What percentage of his properties is he buying out of the area...and why?
Yes that's right he doesnt want to pay his taxes. He's a little sneaky and disingenuous.
You are way too nice Mandy. Don't like these contractors walk all over you. All you need is the contractors Tax ID number, name and address and you can create your own 1099 Form. Clearly they do not want to pay taxes so why are you arguing with them. Just file the 1099 on your own. Since your company size is so small it is highly doubtful that you will be audited. I am sure you can look up Tax ID numbers based from contractor license numbers.
oh but your wrong on some things
I don't mind hearing the whole video! Hahaha...pls upload your original video and don't let your effort go to waste! :)
I love the videos, and you have helped me alot. BUT you are very anal in your daily processes. This whole video is avoidable and the IRS is not that strict on follow ups, you are just very particular and frugal, its obvious watching your vids. I am in Real Estate investing (Flip & Rents) and manufacturing. Every " i " doesn't have to be dotted and t crossed in life. Relax you will live and not go to jail for every "little" thing. Just my opinion not trying to tell you what to do but trust me, most are not as extreme as you are. Go outside your perceived lines one day and discover you will still be alive in the morning and no swat team at your door...
She's a total and absolute liar. That indistinguishable spot is, in fact, a toothpaste splatter.