When to send a 1099

[J0721]

I have had a lot of help in the past from my recently deceased father on taxes but since his passing I have taken over his farm operation and am trying to do the taxes myself with Turbo Tax. I have hired a few family members to do custom work for me such as planting, trucking grain to market, etc. The amounts are in the $5,000-75,000 range. Do I need to send them 1099's for this activity. Dad past at the end of 2021 and all of 2022 I took over the farm operation. If it matters this is not a passive rent scenario I purchase the product and take all the risk.

I also understand from the trust attorney that my siblings and I are going to get a K1 that will have carryforward losses each of us can take on our 2022 tax filing of about $40,000. Does anyone know how I might do that on TurboTax?

Thanks for the help!

[J0721]

Just bumping this to the top hoping for some guidance I know we have lots of tax wizards on here.

Thanks!

[MP123]

I have had a lot of help in the past from my recently deceased father on taxes but since his passing I have taken over his farm operation and am trying to do the taxes myself with Turbo Tax. I have hired a few family members to do custom work for me such as planting, trucking grain to market, etc. The amounts are in the $5,000-75,000 range. Do I need to send them 1099's for this activity. Dad past at the end of 2021 and all of 2022 I took over the farm operation. If it matters this is not a passive rent scenario I purchase the product and take all the risk.

Generally you need to file a 1099-NEC if you've paid an unincorporated entity more than $600 in the course of your trade or business. That seems to be the case here, but there may be specific tax regulations for farms that I'm not familiar with.

If you do need to file you would send them a copy and also to the IRS, the deadline is fast approaching.

I also understand from the trust attorney that my siblings and I are going to get a K1 that will have carryforward losses each of us can take on our 2022 tax filing of about $40,000. Does anyone know how I might do that on TurboTax?

You should be able to enter the K1 in TT and it will take care of it. This is not an uncommon situation.

[GeMoney]

Regarding the 1099 question, yes you are required to issue 1099-NEC to non-employees for their compensation for service over $600.00. The general best practice is to have them complete a W9 form https://www.irs.gov/pub/irs-pdf/fw9.pdf to confirm they are not a corporation. See this from TurboTax https://turbotax.intuit.com/tax-tips/ir ... /L5fbwIFSn

The deadline to issue the recipient and IRS copy is tomorrow Jan 31. You could get forms which you can hand write from the IRS for free but given the deadline you wouldn't receive it on time. You can get the forms at an office supply store or you can use an online service.

[ekid]

My wife's family issues 1099's to each other but all my brothers are corporations- so I don't.

[Uncle Morris]

It's past the deadline, but there are online services to file electronically. I can't say how good or legitimate they are; I used Turbotax, which offers it for free to TT clients (using a form interface that looks like it was developed in the 1980s).