January 24, 2011

Rental Home Owners Face New Tax Reporting Burdens

If you own rental homes the federal government has made your world a bit more complicated in 2011. Buried in the Small Business Lending Fund Act that passed in 2010 there was a new provision for rental home owners. Now every time you work with a contractor that charges you over $600 you will have to send them a 1099.

So you think you will ignore giving Washington more information on your business? Think again, if you are caught not sending 1099's to your contractors you could face fines up to $250,000 for failing to get the required information.

Our advice is to get the 1099 form filled out by every vendor you work with for your rental properties. The cost of non compliance is too high, and as a group you are being targeted by the Federal bureaucracy.

And maybe you heard on the radio or TV that the government is going to repeal onerous reporting requirements for small businesses? You are right on that one, but as a rental property owner, you are not included in that group. Your new tax reporting requirement was buried in a different bill.

Tags: 1099s, rental property, Taxes

Remember, Philadelphia real estate is our specialty. If you're looking for real estate anywhere in the Philadelphia, PA area, including: Center City, Art Museum, Bella Vista, Northern Liberties, Old City, Queen Village, Society Hill, South of South, Washington Square West, Chestnut Hill, East Falls, Fishtown, Manayunk, East Mt. Airy, West Mt. Airy, Overbrook Farms, Roxborough, Spruce Hill, University City or one of the many other areas we serve, we'd love to help you find the home of your dreams. If you'd like to search for Philadelphia real estate now, just click the "Search for Philadelphia Real Estate" link at the top or bottom of this page.