| What is the Impact of the Comprehensive 1099 Taxpayer Protection and Replacement of Exchange Subsidy Overpayments Act of 2011 to Landlords who were required to issue 1099's to Independent Contractors?
The Small Business Jobs Act of 2010 extended the reporting rules that had applied only to businesses to investment property owners. Starting 2012, the IRS wanted landlords to issue 1099s to independent contractors ( for example service providers such as painters & plumbers) if they made payments of $600 or more annually.
Fortunately, as part of the "Comprehensive 1099 Taxpayer Protection and Replacement of Exchange Subsidy Overpayments Act of 2011," this rule has been repealed.
Thus, "Landlords do not have any reporting obligations for their service providers unless landlords' activities amount to a business, but the usual reporting for independent contractors would still be required.
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