If you own or are thinking of investing in a vacation/rental property, here’s something you need to know. In 2011 a new tax law requires owners, of even a single unit of rental property, to submit a 1099 to any vendors you hire throughout the year.
The vendor must be paid more than $600.00 during the year so this will apply to housekeepers on vacation rentals and any large jobs you would hire an independent contractor for including plumbers, electricians, painters, landscaper/gardeners, and handy men.
So, track your payments, even if it is on a credit card, and at the end of the year anyone who is over $600.00 needs to be sent a 1099 to file with their taxes. Failure to file, or late fees may cost you up to $250.00 in penalties. Consider hiring a bookkeeper, but keep their fees under $600.00, or else they’ll have to send themselves a 1099 from you.
Dave Boshell
February 1, 2011
This is part of the new health care law. Thanks Obama
Dave Boshell
February 1, 2011
This is part of the new health care law. Thanks Obama