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Maria2024
January 24, 2024
Question

1099 form for a real estate attorney

  • January 24, 2024
  • 1 reply
  • 0 views

Hello, I am new to the accounting and this is my first year to provide my vendors with the 1099-NEC forms. 

Recently my company purchased a building. We hired a closing attorney. 

My questions are Do I need to send the attorney a 1099 form? if, yes, which one? How to calculate the amount that is supposed to be included? How to put this into the QB correctly?

1 reply

Clark_B
Clark_B
January 25, 2024

Welcome to the Community, @Maria2024.

 

Let me help and provide insight about the 1099 form in QuickBooks Desktop (QBDT).

 

To start, yes, you're required to send a form by U.S. tax law to file a 1099-MISC form if you paid $600 or more for your attorney. Unlike the 1099-NEC, the payments found on a 1099 MISC are geared towards vendors, attorneys, and other individuals who are not proper contractors. But you'll have to check the IRS website to see if you fall for the criteria for 1099. If you have more questions about who needs to file, check with the IRS. 

 

In addition, you'll have to create a cheque record in QuickBooks for expense paid to the attorney then inside of it, create a category for expenses dated 2023 like Attorney fees. However, if you are unsure which category to use, I suggest consulting your accountant for accurate information. Once you have recorded it, you will need to create a 1099 for NEC or MISC to track for the Attorney fee category.

 

You can also check this article for more detailed information: Get answers to your 1099 questions.

 

I'll also add this article to guide you in understanding different federal payroll forms, and tax payments: Understand federal forms and tax payments for 941, 944, 943, and 940.

 

Don't hesitate to leave a comment below if you have follow-up questions about 1099 or other QBDT-related concerns. I will answer them in any possible way.

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