Contractors & 1099 Filing Requirements

To claim rehab expenses, you must comply with your obligation to file 1099-NECs for all independent contractors to whom you paid $600 or more. The filing deadline for 1099-NECs is January 31 of the following year.

To obtain info required to file the 1099s, request a W-9 from your contractors, preferrably before work begins.

Tracking Spreadsheet

Request a free copy of an excel template to track your rental income & expenses on a monthly basis and to simplify data submission for tax prep. Find our contact info on the LU Vendor website.

Passive Losses

For SF rentals with active participation, you can deduct up to $25k of passive loss if your income is under $100k. If your income is between $100k - $150k, you may still be able to deduct some passive loss, with the remainder carrying forward. To find out more, contact Dewey Tax — find us listed on the LU Vendors website.

What documents does Dewey Tax need from you?

  • Closing documents for current year purchases, refinances, and sales.

  • Federal Depreciation Schedule for existing SF properties (usually included in prior year tax return).

  • 1098 forms for Mortgage Interest.

  • Itemized rehab receipts/invoices that are $2500 or more.