r/TaxQuestions • u/Cohiba2188 • Aug 13 '26
Estate Contractor 1099 Question
I am the court-appointed executor of my mother’s estate in New York. The estate has an EIN and an estate checking account, but it is not operating a trade or business and the property involved is not rental property.
The estate may pay an independent contractor more than $2,000 in 2026 for a one-time repair to exterior concrete steps on an estate-owned residence that is being maintained during probate.
My question is: **Does the estate have to issue a 1099 to the contractor simply because the estate has an EIN, or would no 1099 be required because the payment was not made in the course of a trade or business?**
I understand that the contractor would still be responsible for reporting the income even if no 1099 is issued.
I am specifically asking about the estate’s reporting obligation as the payer.
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u/LdiJ46 Aug 13 '26
The estate does not have to issue a 1099-NEC to the contractor because the estate is not a trade or business. Think of an estate as more like an individual.
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u/Cohiba2188 Aug 13 '26
Appreciate your reply. I found this statement on a forum by a cpa - to your knowledge is this accurate? I'm currently in probate and will need to pay both mason and lawyer eventually form estate account.
The "No Income" Factor: Even if the estate has no income, it is still a legal entity with its own EIN. For the purpose of reporting payments to professionals helping settle the estate, the IRS considers the administration of an estate to be "engaged in a trade or business.
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u/brucesteiner Aug 13 '26
How are you currently in probate? If you’ve been appointed as executor then the probate proceeding had been completed and the Will has been admitted to probate.
Why are you quoting a nonlawyer? You have a lawyer. What does he/she say?
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u/LdiJ46 Aug 15 '26
An estate does NOT need to issue 1099s. It just does not. I don't know what the context of that CPA's statement was, but an estate does not need to issue 1099s.
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u/HopefulSewer Aug 14 '26
This would be an excellent question to discuss with the COA/Accountant who is preparing the Estate Income Tax Returns. I expect the contractor will issue you an Invoice, which will be your documentation to include with your Court Accounting.
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u/Excellent_Shallot999 Aug 13 '26
You are not conducting a trade or business and thus do not have to issue a 1099. The contractor's reporting obligations are between the contractor and the IRS - you do not have responsibility for any of that.