Being a shop owner, can an insurance company demand a 1099 when i paid for repairs out of my pocket?
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Asked November 13, 2017
You had some damage done to the shop you own. You paid for the repairs out of your own pocket. Technically, you will get a 1099 Misc form when your situation has met one of the following conditions.
- Did you get any royalty payments? An example of a royalty payment is someone paying you for them using your work on their site.
- You say you own your shop. Unless you make rent payments to someone else, you will not be getting one of these forms.
- Are you paying anyone to come in and look at your shop's damage? Did you hire a contractor or lawyer? Unless you did this, you will not be getting a form.
- Are you paying any punitive damages because of what has happened with your shop? Unless this is happening, you will not be getting one.
- Is anyone hurt because of your shop? Is anyone getting any lab work done? Is anyone talking to a doctor and filing a report right at this moment? Unless you or your staff are doing these things, you are in the clear.
There may come a time when you or your staff will need to see a doctor. Once this starts happening, then you will need to report the payments. Do not wait too long. There is a statute of limitation on how long you can go without seeing a doctor before the point becomes moot.
- Are you working with an attorney to get everything worked out? Are you cutting them a check right now? You will need to report this. The IRS frowns on you omitting items like this.
I suggest you speak with your insurance company to be safe. I do not anticipate you will get one of these forms, but you never know.
Answered November 14, 2017 by kai127