If You Own Rental Property, You Need to Read This
Posted Feb 8, 2011
This information was sent to me by my accountant. PLEASE seek the advise of your own accountant or attorney when it comes to tax matters. I am supplying this information to my clients because I know a number of you own rental property. Please keep in mind that I am a REALTOR (not an Accountant or an Attorney and I DONT play either on TV).
The new Jobs and Credit Act signed by President Obama on September27, 2010 made landlords subject to 1099 reporting requirements. Even if you own only one property that you lease, you are required to report payments for rental property expenses. Examples of these expenses include but are not limited to plumbing, landscaping, repairs, etc. The law applies to payments made after December 31, 2010.
For 1099 reporting purposes, the law considers all rental property owners to be conducting a trade or business. Therefore a 1099 MISC needs to be issued to any individual or non-incorporated business such as partnerships and limited liability companies to whom you have paid $600 or more during 2011.
The new Jobs and Credit Act signed by President Obama on September27, 2010 made landlords subject to 1099 reporting requirements. Even if you own only one property that you lease, you are required to report payments for rental property expenses. Examples of these expenses include but are not limited to plumbing, landscaping, repairs, etc. The law applies to payments made after December 31, 2010.
For 1099 reporting purposes, the law considers all rental property owners to be conducting a trade or business. Therefore a 1099 MISC needs to be issued to any individual or non-incorporated business such as partnerships and limited liability companies to whom you have paid $600 or more during 2011.
