Print This Article New Tax Law Requires Rental Owners to Submit 1099 Tax Forms
Krisha Augerot, RA
BY KRISHA AUGEROT RA - 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.
See more at Hawaiilife.com
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[...] A new tax law will require vacation rental owners to submit 1099 forms starting in 2011. The forms will need to be submitted for all vendors who are paid over $600, so make sure you track your payments to service providers such as housekeepers and repair companies. [...]