New Law for Rental Property Owners

January 31, 2011

Last week I came across an article that addressed a new law that affects owners of rental property - even owners of just one single family rental. Effective January 1, 2011, all rental property owners will be required to keep a record of all payments to vendors who are paid at least %6000 in the course of a year. Last year the federal government enacted the Sm all Business Jobs Act of 2010 (HR 5297) that expanded the requirement to issue a IRS 1099 form to any vendor who does $6000 or more work for you on the rental property.

Rental property owners will have a legal obligation to obtain certain information from their vendors - name, address, Social Security number or other tax identification.

Since this regulation took effect January 1, 2011, I hope that you began keeping these records. Not all the guidelines are in place, but knowing you will need to comply with this laws allows you to be on top of the necessary record keeping.