As of January 1, 2011, landlords and property managers are required by law to keep even more detailed records pertaining to their properties.
According to this new rental property tax law, anyone who does more than $600 worth of work on your rental property while you own it and are collecting rent on it should be sent a form 1099 at tax time. This includes contractors such as painters, plumbers and electricians but can also include your business accountant as well.
In order to send out the correct 1099 forms next January, you need to collect the correct information on a W-9 form, which can be downloaded here from the IRS website. Keep some copies in your office and if you have regular contractors throughout the year, don’t waste time getting the forms filled out. The last thing anyone wants during tax time is to hunt down lost paperwork from suppliers.
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Thanks for sharing this information. I wish my accountant sent this to me first (meaning he was keeping up with these new laws). Looks like my investor friends are more on the ball.