Sound Real estate information for the mid-peninsula of San Francisco: the Silicon Valley.
Thursday, July 14, 2011
Do you rent out one of your properties?
Reporting is now easier for mom-and-pop landlords.
I had send earlier in the year an email to all my clients who rented out a property, to alert them about a new IRS reporting requirement.
Good news: this has changed, for the better. Here is how:
Households that find renters for a second property but are not in the business of real estate don’t have to send an IRS Form 1099 to vendors if the vendors do more than $600 worth of work in a year. Landlords have faced the 1099 reporting requirement for a while, and that requirement continues to apply to them, but last year the requirement was extended to households and entities that rent out property as a sideline but are not in the rental housing trade.
The National Association of Realtors and others strongly opposed that expansion and succeeded in persuading lawmakers to repeal it, which Congress did.
President Obama signed the repeal into law in late April, so, now the requirement applies as it always has: just to those in the business of real estate.