Landlords take note!!!

As if Americans are not bogged down with enough taxation, we can now thank congress for its newest addition to our pain.

H.R 5297   The Small Business Jobs Act bill     

This bill includes the new 1099 reporting requirements.  These requirements scheduled to take effect in 2012 are expected to raise revenue by 18 Billion $$ over a ten (10) year period.

Here is the scoop….

All businesses, tax-exempt organizations, and federal, state and local government entities would have to send 1099 forms to any vendor from whom they buy more than $600 in goods during a calendar year.

Starting in 2011, ANYONE (including small investors) who receives rental income must provide a 1099 for all payments made for $600 or more to service providers such as plumbers, painters, carpenters, and yard maintenance and repair people.  The new requirement is for both residential and commercial property.

 NAR Issue Brief