Up until this new year (Jan 04), I have been working on a 1099 basis with a couple of independant contractors who always had enough going on to keep me busy. I am now licensed and insured myself and have begun to get jobs on my own. I started out the year with a $35k basement remodel and am therefore doing some general contracting myself. My wife is doing a great job managing the accounting for the business and providing great job cost information, but because we are both new to the general contracting aspect of the business we have a couple of questions that I need some help with. Can anyone assist by answering directly or recommending a source for finding answers to these questions?
1. On Schedule C, where do you report subcontractors. There are only categories for:
- Contract labor
- Cost of Goods Sold – labor
- Cost of Goods Sold – material
- Cost of Goods Sold – other
2. As a GC do you split subcontractor amounts by labor versus materials or report the total number? If so, where?
3. If labor is split , then do you issue a 1099 for every subcontractor you use?
Any help here would be much appreciated