New 1099 requirements for landlords
Starting in 2011, any person who receives rental income must provide a Form 1099 for all payments of $600 or more made to service providers. The business that makes certain expenditures must file a Form 1099 to reflect payments made for items including (but not limited to) rent, salaries, wages, and gains. The rule is imposed to assure that those who have received payments actually report the income. The payer files the Form 1099 with the IRS and with the party who received payments. In the case of real estate, persons engaged in a trade or business would include full-time property managers and those whose primary business is property management and other real estate services. Some engaged in leasing activities could also fall within this requirement if they receive rental payments on the lease or otherwise manage the property. Click here for more.
Source: Realtor.org; 10/1/2010
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