2011 Tax questions

Question:
      We haired a roofing company(Licensed) changed roof for our house(investment property). If we do not need to file 1099, how to claim the tax? Should we ask for their tax ID?

Answers:

• My accountant said: "For corp, ask for W-9. If Home Depot that's obvious enough.
  1099 for everybody else over $600."
  
   
• For 2010, only for services, not goods purchased
• my accountant said, most likely that IRS 2011 decision will be repealed...

• the new requirement for 2011, you must issue a 1099 to all vendors, for goods and services over value of $600, including LLC/LLP, but S-corp and C-corp are exampted..
  the house and senate are both try to repeal the IRS requirement as we speak.
  
  http://taxes.about.com/od/businesstaxes/qt/1099-Misc-Reporting-for-Miscellaneous-Payments.htm
  more to read..
  http://www.naahq.org/publications/units/2011/03_11/Pages/1099RepealAdvances.aspx
   

• It depends:
  
  
  unless the repair bill is less than $600, otherwise you need to issue a 1099, thus, you need their SS# or EIN.
  further, whether you can claim as expense or must depreciate over life the property, here is what IRS said..
  

  How Do You Treat Repairs and Improvements?

  
  If you improve depreciable property, you must treat the improvement as separate depreciable property. Improvement means an addition to or partial replacement of property that adds to its value, appreciably lengthens the time you can use it, or adapts it to a different use.
  You generally deduct the cost of repairing business property in the same way as any other business expense. However, if a repair or replacement increases the value of your property, makes it more useful, or lengthens its life, you must treat it as an improvement and depreciate it.
  

  Example.

  You repair a small section on one corner of the roof of a rental house. You deduct the cost of the repair as a rental expense. However, if you completely replace the roof, the new roof is an improvement because it increases the value and lengthens the life of the property. You depreciate the cost of the new roof.
  
  http://www.irs.gov/publications/p946/ch01.html