New 1099 rule for taxpayers who own rental property
Do you own a rental property? If so, there is a new law regarding the issuance of 1099s that you should be aware of.
Under the Small Business Jobs Act of 2010, private individuals will need to issue a Form 1099-MISC to service providers to report payments of $600 or more during the year for any expenses relating to their rental properties. The new law requires 1099s to be issued in early 2012. This means that starting January 1, 2011, rental property owners should start keeping records of payments and collecting Form W-9 or a similar form to obtain the name, address and taxpayer identification number of their service providers. Until we get confirmation that the new 1099 laws have been repealed, you should start gathering the required data. For more information, please read this article from the Journal of Accountancy.