Rental Property Owners Must Issue 1099's

The Small Business Jobs Act that passed Congress last year requires all property owners that rent out properties to file a 1099 for each vendor who does $600 or more in work.  Even if you only rent out a single property, you must collect the following for each vendor:

  • name
  • address
  • Social Security or Federal Employer Identification Number

The details to the exceptions to this requirement have yet to be ironed out but the exceptions include:

  • burden:  if gathering the required information and issuing the forms create a hardship
  • duration: the property is only a temporary rental of your own residence
  • income:  your income from the rental doesn’t meet minimal threshold requirements (as yet unidentified)

If you are renting out a property, make sure you, your bookkeeper, and/or CPA have a way of tracking each vendor starting January 1, 2011.

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