Nathan of Rentec Direct highlights an important piece of legistlation for all investors and landlords. Paperwork is always time consuming, but this one would have been particularily challenging for landlords.
Enjoy:
As you may or may not recall, depending on how close-knit you are within CPA circles, there was a significant new tax consequence and reporting requirement introduced for landlords within the Small Business Jobs Act and the healthcare reform bill passed in 2010.
This new reporting requirement was introduced to help the IRS better monitor landlord property expenses by requiring a 1099 to be filed for all independent landlords for payments during the year to any vendor or individual exceeding $600. Examples of 1099 recipients would include: gardeners, landscapers, contractors, property managers and repair services.
Earlier this year with support from Realtors, landlords, and landlord associations such as the NARPM all contacting their representatives to object to this over-reaching reporting requirement; both Congress and President Obama got the message and decided the filing burden was too great for smaller landlords. The requirement for rental property owners to file 1099's was repealed in May of 2011. The senate voted 87-12 to approve the repeal and it was signed shortly thereafter by Obama.
This is good news for landlords, your 2011 taxes just got a lot easier as you do not now have to collect tax information from your vendors, nor report it on the 1099-MISC form as proposed in the Small Business Jobs Act.
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Nathan is a member of Rentec Direct who provides property management software, tenant ach payment processing, and tenant screening for property managers and landlords nationwide.
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Information and content on this blog is original to Michelle Francis
Michelle Francis
Tim Francis Realty, Serving Buckhead, Atlanta & Sandy Springs GA
(404) 219-9760
Want to know more about Residential Buying, Selling, Executive Home Leasing & Property Management in Buckhead, Atlanta and Sandy Springs, GA?
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While Nathan is correct that the requirement for EVERYONE reporting payments over $600 under the healthcare law, the PRIOR IRS ruling is still in effect for property managers and landlords. That is an IRS ruling and has NOT been repealed.
I JUST received my order form for my PROMAS forms for my 1099-MISC filings for 2011...
Interesting with Wallace's input. Definitely something for landlords/homeowners to check out for this year's filing. Thanks for the re-blog as I missed the original!
Michelle, just stopped by to wish you a very Merry Christmas. Love the new photo too!
Just wanted to stop off and wish you a Merry Christmas and a happy New Year and thank you for being a part of this great network, that without we would have never connected.
Michelle -- Just stopping by to wish you a Merry Christmas. May peace, joy, hope and love be the gifts you receive and may they be the gifts you bestow to others this Christmas.
By the time you read this, you'll probably know whether you were naughty or nice. Look under the Christmas tree.... no presents? naughty.... I'm guessing they'll be lots of presents.
Hi, Michelle! I just wanted to stop by to wish you a very happy New Year and did not expect to see such an important issue in your post. Good call for a reblog. I appreciate it because I had missed it.
Good information for all of us to know. Thank you!
Happy Holidays! Happy New Year!
Longwood Gardens IMG_2193
Photographs by Roy Kelley. Canon PowerShot G11 camera.
Roy and Dolores Kelley Photographs
Michelle, Sometimes the actions of our governments make sense, and are timely too.. HaHa.