New Law Requires More Documentation on Rental Properties

(Originally published November 2010).

January 1st, a new law went into effect that requires rental property owners to submit additional accounting records to the IRS.

This is a provision of the Small Business Jobs Act passed by your Congressional representatives that dictates that rental income be in the same tax category as a business or trade. You are required to complete an information return (typically
Form 1099-MISC) to the vendor and IRS if you pay $600 or more to a service provider while receiving rental income.

If you plan to have any work done on your building this year, you must keep those receipts! Fines will range from $60 to $250,000 at the discretion of the IRS for not providing these new tax documents.

This information is accurate yet not my own. It was received as an uncited news alert.