Important Information to Rental Property and Investment Property Owners
During 2010, new reporting requirements were added to the duties of investment property owners which would have required all investment property owners who paid over $600 to service providers to issue Form 1099 in 2011. Previously only real estate professionals engaged in property management type businesses had been required to file Form 1099 to service providers. View previous post on January 21, 2011 on this.
Congress had extended the Form 1099 requirement to any person who receives rental income in that 2010 legislation. That requirement would have applied to any landlord(including a small investor), rather than only those who are in the business of managing property. Yes, it would have been time consuming for all rental property owners.
The GOOD NEWS! Congress this week passed legislation to repeal that provision in the small business legislation enacted last year!
As an income property owner I am happy that law was repealed and I thank the National Association of REALTORS for their efforts!