Uncategorized January 10, 2011

Reporting Income

That under the Small Business Jobs Act, landlords will need to issue a 1099-MISC to report payments totaling $600 or more during the course of the year for any expenses relating to their rental properties. This requirements starts in 2011 and includes payments to service providers such as plumbers, carpenters, yard services and repair people. The Form is provided to the IRS and to the service provider. The new requirement applies to both residential and commercial property.

Although the requirement to issue the 1099s doesn’t take effect until 2012, landlords need to start keeping records of payments starting January 1, 2011, so they will be prepared to issue correct 1099s. They will also need to obtain the name, address and taxpayer identification number of the service provider, using Form W-9 or a similar form.