Roost Realty
Property Management

Landlords and 1099 reporting

February 12, 2011 by · Leave a Comment 

A new law went into effect for 2011 that affects landlords. All landlords who receive $600 or more in rent for the year must send a 1099 to all service providers that the landlord paid $600 or more during the year, such as plumbers, carpenters, yard services, and repair people.

1099-Misc

Prior to 2011, this requirement had only applied to those involved in full-time property management, but now the requirement covers all types of landlords. As a property management company, Roost Realty has always had to issue 1099’s to our owners for rent collected and also to vendors with whom we spent over $600. Now if you are a homeowner renting out your own home you will be required to do the same.

Starting this year, 2011, you will need to collect federal tax ID numbers from service providers in order to file the 1099s. Failure to file the 1099s with the IRS can result in fines of $50 per 1099 not filed with the IRS. In 2012, these requirements will expand to cover providers of good to landlords.

Luckily, this does not affect our property owners. Since we represent them in the renting of their home then the reporting and 1099 requirements fall on our shoulders.

Mindy

Roost Realty