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The rental management company that is handling a house of mine is asking if I want a 1099 issued. Why would I?
Obviously, I know how much rental income I have received, and I won't be mailing my tax return anywhere.
The rental management company that is handling a house of mine is asking if I want a 1099 issued. Why would I?
Obviously, I know how much rental income I have received, and I won't be mailing my tax return anywhere.
"The act subjects recipients of rental income from real estate to the same information-reporting requirements as taxpayers engaged in a trade or business. Thus, rental income recipients making payments of $600 or more to a service provider in the course of earning rental income are required to provide an information return (typically, Form 1099-MISC, Miscellaneous Income) to the IRS and to the service provider. This provision will apply to payments made after Dec. 31, 2010, and will cover, for example, payments made to plumbers, painters or accountants in the course of earning the rental income.
While rental property owners will not actually issue the required 1099s until early 2012, they need to start keeping adequate records of payments starting Jan. 1, 2011, so they will be prepared to issue correct 1099s. They will also need to obtain the name, address and taxpayer identification number of the service provider, using Form W-9 or a similar form."
It was something new last year, another obama rule to make sure he doesn't miss out on a penny of your money.
I have a rental property and had to send a 1099 to my PM, the gardener who maintains the property, and the maintenance man who did work on the property. Anyone you pay more than $600.00 dollars to. Originally the law said any vendor you paid any money to at all, i.e., office products, every cent you paid for anything related to business. That was changed or it would have had business' grinding to a halt. The IRS is getting way too invasive.
The IRS wants to cross check what you say and what your vendor says and they better match up or a SWAT team shows up at your house and arrests your entire family...
Out of every $100 actually owed in taxes, the IRS receives about $83. This difference is called the "tax gap" and it arises from three principal sources -- non-filing, under-reporting, and underpayment. By far the largest of these is under-reporting and the bulk of that seems to be small businesses simply omitting income and deliberately misclassifying other expenses as business expenses. This is what expanded 1099 reporting is designed to clamp down on.
The rental management company that is handling a house of mine is asking if I want a 1099 issued. Why would I?
Obviously, I know how much rental income I have received, and I won't be mailing my tax return anywhere.
It appears some rental agents/companies issue 1099s though it isn't clear (to me...yet) that it is a legal requirement (at least in all cases).
To extend the question a bit ...if you own a condo-hotel unit, or a plain old condominium, (or I suppose a house too) that is rented by others such as a management company on or off premises, external RE agents, other services, etc... do you get a 1099 statement yourself or simply a report of income received?
1099's are informational filings regarding payments made by the issuer. If you manage rental property youself, 1099's are your responsibility. If you pay a management company to take care of your property, they are most likely simply asking if you would like a copy of the 1099's that they are obligated to file on your behalf in that capacity. Basically, you should say "Yes".
Defenders of the Tax Gap (aka the Republican Party) were able to get nearly all expanded 1099 reporting requirements rolled back. This was a "victory" in attempts to defund Obamacare, since the additional revenues expected were originally part of the funding for that. While there was much operatic weeping, wailing, and gnashing of teeth over it all, small buisness would not have ground to a halt from it. Anyone keeping actual books of their business would have had all the necessary information already at hand, and they would already have had a means for producing 1099's, since prior law did and still does require it. See the two little questions at the top of Schedule E. Follow the bread crumbs from there to learn as much more about this as you'd like.
Out of every $100 actually owed in taxes, the IRS receives about $83. This difference is called the "tax gap" and it arises from three principal sources -- non-filing, under-reporting, and underpayment. By far the largest of these is under-reporting and the bulk of that seems to be small businesses simply omitting income and deliberately misclassifying other expenses as business expenses. This is what expanded 1099 reporting is designed to clamp down on.
and as a result it creates a paperwork nightmare for small business that is just another layer of government interference. Comrade obama will stop at nothing to kill off the small businessman on his way to socialism.
If he would cut out 1% of wasted government spending, everyone's taxes would drop drastically, but that might hurt his corrupt staff
and as a result it creates a paperwork nightmare for small business that is just another layer of government interference. Comrade obama will stop at nothing to kill off the small businessman on his way to socialism. If he would cut out 1% of wasted government spending, everyone's taxes would drop drastically, but that might hurt his corrupt staff
Comrade Obama? Give me a break!!! If you can't manage to keep track of who you pay money to and who you receive money from, you are rather plainly not competent to run any business of any size. In the real world, even something as simple a QuickBooks will keep track of everything one might need in order to prepare and mail out 1099's. You need to be able to find and click on a command. How hard is that actually?
Comrade Obama? Give me a break!!! If you can't manage to keep track of who you pay money to and who you receive money from, you are rather plainly not competent to run any business of any size. In the real world, even something as simple a QuickBooks will keep track of everything one might need in order to prepare and mail out 1099's. You need to be able to find and click on a command. How hard is that actually?
You must order the proper paperwork from the government, you cannot click and download the special forms required.
You can find the forms on line, you can download and print them, you can fill them out, but they will not be accepted. Must be on the special forms the gov supplies in RED printing..
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