Commercial Real Estate Investment Real Estate

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.