INSIGHTS & IDEAS

New reporting requirements for landlords in 2011

Commencing January 1, 2011 anyone receiving income from leasing real estate is required to file information returns (1099-MISC) for payments to any service providers in excess of $599.  Accordingly, landlords should obtain proper names, addresses and ID numbers before paying anyone.  This would include payments for such services as snowplowing, landscaping, etc.   

This provision was repelled in April 2011, but could reserface in the future. It is prudent to obtain the necessary information before paying any independent contractors.