If you are a landlord the new tax package recommended by the President has some whammies for you. Get ready to have to start reporting everything that you spend over $600 to the government and start filing paperwork.
And if that throws you off, think of a plumber going through your house for less than $600.
Are you a landlord? Do you maybe own an investment property, or a summer place that you rent to others, or perhaps you could not sell your last house so you are renting it instead? Well, you’re really going to hate this one:
Recipients of real estate rental income that make payments of $600 or more to a service provider (such as a plumber or accountant) in the course of earning rental income would be required to send an information return (generally, Form 1099-MISC) to the IRS and to the service provider. Exceptions would be made for particularly burdensome situations, such as for taxpayers (including members of the military) who rent their principal residence on a temporary basis, or for those who receive only small amounts of rental income. The proposal would be effective for tax years beginning after December 31, 2009, and would raise about $3 billion through 2019. TigerHawk.
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I dont know how people will take this but if now i have to invest i will look other option then real estate in such scenario.
I can see Landlords requesting their Property Managers complete the paperwork for them, lol.