I just ran across this item in the February issue of Realtor magazine: If you own even just one rental property, be aware that starting this year, a new law requires all rental property owners (no matter how small) to start tracking all vendors doing at least $600 worth of work for them and to send the vendors an IRS 1099 form. This requirement has been around for larger rental property owners but the enactment of last year’s Small Business Jobs Acts of 2010 expanded the reporting requirement to all rental property owners even if you only have one property.
So if you own a rental and have a vendor do work for you of at least $600 during the whole year, you are legally required to obtain certain information from that vendor, such as name, address, social security number or tax ID, and what you paid them during the year.
Be sure to check with your bookkeeper or tax specialist to make sure you stay on the correct side of the law on this one.
all4now
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