New law creates big tax headache for rental property owners

[Dont Taz Me Bro]

I've always reported my rental income. What they want is for me to bear the burden in forcing other people to report their's, which is not my problem. It's another obstacle in growing and bringing more businesses to this country.

Correct, but banks already do this, as do most businesses, and auto dealers do, your employer generates forms documenting your income. All they are asking you to do is document money that you pay to contractors with a half page form. It'll take you 3 minutes.

With all due respect, you have no clue what you're talking about. There is no reason for me to rehash what the others have already said.

 

[Cuyo]

I've always reported my rental income. What they want is for me to bear the burden in forcing other people to report their's, which is not my problem. It's another obstacle in growing and bringing more businesses to this country.

Correct, but banks already do this, as do most businesses, and auto dealers do, your employer generates forms documenting your income. All they are asking you to do is document money that you pay to contractors with a half page form. It'll take you 3 minutes.

It's not just contractors, it's every company, business, or person to whom you have paid $600 to in a year.

For example, I order supplies from Staples to the tune a several thousand dollars a year. I and every other business who spend $600 at Staples will have to 1099 them.

How many 1099s do you think companies like Staples will receive in a year and how much will it cost to process them?

How much more do you think you'll be charged when you buy something at Staples?

That ain't true. 1099 doesn't apply to purchasing goods. Christ, I'd have to send out around 200 of em a year... It's for rent, sub-contractors, services, etc.

Frankly, I've never filed one. I'm supposed to, I just don't. Not necessarily recommending this course of action to anyone else. But it's worked out just fine for me.

 

[Cuyo]

I've always reported my rental income. What they want is for me to bear the burden in forcing other people to report their's, which is not my problem. It's another obstacle in growing and bringing more businesses to this country.

Correct, but banks already do this, as do most businesses, and auto dealers do, your employer generates forms documenting your income. All they are asking you to do is document money that you pay to contractors with a half page form. It'll take you 3 minutes.

With all due respect, you have no clue what you're talking about. There is no reason for me to rehash what the others have already said.

I dunno, DTM...

Looks like 'bout a half a page to me.

 

[Skull Pilot]

Correct, but banks already do this, as do most businesses, and auto dealers do, your employer generates forms documenting your income. All they are asking you to do is document money that you pay to contractors with a half page form. It'll take you 3 minutes.

It's not just contractors, it's every company, business, or person to whom you have paid $600 to in a year.

For example, I order supplies from Staples to the tune a several thousand dollars a year. I and every other business who spend $600 at Staples will have to 1099 them.

How many 1099s do you think companies like Staples will receive in a year and how much will it cost to process them?

How much more do you think you'll be charged when you buy something at Staples?

That ain't true. 1099 doesn't apply to purchasing goods. Christ, I'd have to send out around 200 of em a year... It's for rent, sub-contractors, services, etc.

Frankly, I've never filed one. I'm supposed to, I just don't. Not necessarily recommending this course of action to anyone else. But it's worked out just fine for me.

It will if this new law stands which is the topic of the thread. Try and keep up.

http://money.cnn.com/2010/05/05/smallbusiness/1099_health_care_tax_change/

Section 9006 of the health care bill -- just a few lines buried in the 2,409-page document -- mandates that beginning in 2012 all companies will have to issue 1099 tax forms not just to contract workers but to any individual or corporation from which they buy more than $600 in goods or services in a tax year.

 

[Cuyo]

It's not just contractors, it's every company, business, or person to whom you have paid $600 to in a year.

For example, I order supplies from Staples to the tune a several thousand dollars a year. I and every other business who spend $600 at Staples will have to 1099 them.

How many 1099s do you think companies like Staples will receive in a year and how much will it cost to process them?

How much more do you think you'll be charged when you buy something at Staples?

That ain't true. 1099 doesn't apply to purchasing goods. Christ, I'd have to send out around 200 of em a year... It's for rent, sub-contractors, services, etc.

Frankly, I've never filed one. I'm supposed to, I just don't. Not necessarily recommending this course of action to anyone else. But it's worked out just fine for me.

It will if this new law stands which is the topic of the thread. Try and keep up.

Health care law's hidden tax change to launch 1099 avalanche - May. 5, 2010

Section 9006 of the health care bill -- just a few lines buried in the 2,409-page document -- mandates that beginning in 2012 all companies will have to issue 1099 tax forms not just to contract workers but to any individual or corporation from which they buy more than $600 in goods or services in a tax year.

OIC. No that's not the topic of the thread. The topic was extending current 1099 reporting requirements to landlords, but only in their current capacity.

And yeah, I'm gonna look into that one you just pointed out. I'd certainly be against that. I also probably would forget to file them again.

 

[loosecannon]

I've always reported my rental income. What they want is for me to bear the burden in forcing other people to report their's, which is not my problem. It's another obstacle in growing and bringing more businesses to this country.

Correct, but banks already do this, as do most businesses, and auto dealers do, your employer generates forms documenting your income. All they are asking you to do is document money that you pay to contractors with a half page form. It'll take you 3 minutes.

With all due respect, you have no clue what you're talking about. There is no reason for me to rehash what the others have already said.

With all due respect you can't read. This law is already in place regarding most businesses but the threshold has been lowered.

If it bugs you so much pay an accountant $187/year to do your books on your rental. Problem solved, tax revenues get paid as they are supposed to, everybody is happy except the career whiners.

 

[asterism]

Correct, but banks already do this, as do most businesses, and auto dealers do, your employer generates forms documenting your income. All they are asking you to do is document money that you pay to contractors with a half page form. It'll take you 3 minutes.

With all due respect, you have no clue what you're talking about. There is no reason for me to rehash what the others have already said.

With all due respect you can't read. This law is already in place regarding most businesses by the threshold has been lowered.

If it bugs you so much pay an accountant $187/year to do your books on your rental. Problem solved, tax revenues get paid as they are supposed to, everybody is happy except the career whiners.

Which accountant only charges $187 per year do do the books on rentals? Also, did you not read the built-in ambiguity on whom the 1099 should be filed? Which entity do I put on the 1099 for carpet just installed in my rental?

 

[loosecannon]

The contractor.

If you don't know who to send the form to ask your accountant. I assume my accountant would charge me a few $ to file that form.