Thanks to one of my clients, who pointed this new regulation out to me....
If you own rental property, you must now submit a 1099 form to the IRS and to service providers if you pay $600 or more for the provided service -- such as to a plumber, carpenter, painter, landscaper, etc.
Apparently, the basis for this requirement is to make sure that contractors are not hiding their income. Requiring that this information from rental property owners will (potentially) reveal more income that should be taxed.
This goes into effect for 2011 rental property income and expenses, so start keeping detailed records, if you're not already.
Do you love legislation and taxation? Read more about the
Small Business Jobs Act of 2010, which enacts this new requirement.
Recent Articles:
