TAXMAN Posted January 10, 2013 Report Share Posted January 10, 2013 What we have here is a farm partnership that during the year it has bought feed, seed, hay and other supplies that were bought from other farmers(most are individual). Are we legally supposed to issue 1099's to all the various people who are not partnerships or corporations that the ptrship paid in excess of $600.00. What are others doing? Quote Link to comment Share on other sites More sharing options...
Lion EA Posted January 10, 2013 Report Share Posted January 10, 2013 If the partnership paid non-corporations for services, then the partnership issues Form 1099-MISC. Quote Link to comment Share on other sites More sharing options...
APF Posted January 10, 2013 Report Share Posted January 10, 2013 So for example, if a farmer buys feed, seed, hay, and other supplies; they are products and you do not need to issue 1099 in that case. But if a farmer pays a custom harvester, that is a service; then he needs to issue a 1099. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted January 10, 2013 Report Share Posted January 10, 2013 Yes, same as always. If in the course of his trade or business. Lower limits for issuing to attorneys. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted January 10, 2013 Report Share Posted January 10, 2013 APF makes the crucial distinction. Buying the feed is not a 'service', so no 1099 is needed. But if you are paying the other farmer for a 'service' such as when you pay another farmer to harvest your hay, whether that is for cash or on a 'share' or barter basis, it's a 1099 situation. Quote Link to comment Share on other sites More sharing options...
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