Landlords (whether professional or casual) need to 1099 the service providers to whom they paid $600 or more during the calendar year. It's new that the casual landlord, not just the professionals, must 1099 service providers.
Landlords must send a 1099 to all service providers who received payments of $600 or more during the year, such as plumbers, carpenters, gardening services, and repair people.
This new requirement applies to owners of both residential and commercial property. The exception to this new requirement is when an owner temporarily rents out his/her primary residence, as long as the owner's income does not exceed a "minimal" amount to be determined by the IRS.
Prior to 2011, this 1099 tax filing requirement only applied to people involved in full-time property management. This new filing requirement covers all landlords (including small investors). So Landlords will need to gather federal tax ID numbers from their service providers in order to file the 1099s with the IRS.
The National Association of REALTORs® opposed this change in the law and then worked for its repeal or modification.
If you want information or have questions about your situation and this 1099 filing requirement, contact the Internal Revenue Service.
This is for information only and not the providing of tax or legal services. If you want or need more information, please contact your income tax professional or the Internal Revenue Service.
Harrison K. Long - Business Solutions and Advisory - REALTOR® and broker associate, Coldwell Banker Residential Brokerage, Irvine, CA - 949-854-7747 (phone) - CA DRE 01410855 - ExploreProperties@gmail.com (email)