President Obama signs 1099 repeal act
In a recent client letter, and our February 2011 newsletter, we notified you of a new law requiring rental property landlords to file 1099s for all individuals and businesses that provide services to their properties totaling $600 or more a year. And, we told you to stay tuned for further updates.
Here’s the latest.
President Obama recently signed the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011, which, in part, repeals the information-reporting requirements for rental property expense payments. In essence, this puts everything back the way it was. Whew.
This does not mean, however, that all rental property owners are now free from filing any 1099s. Rental properties that are considered to be part of a “trade or business” always had, and still do have, requirements for 1099s.
Please let us know if you need help sorting our this newest adjustment to the law so that you remain In compliance.