Q. Hi Larry, Hope things are going well for you this tax season. After reading some of your information I need to clarify some information. Do we need to give our renters 1099’s and do I need to give one to the guy that did some remodeling on our rental?
A. You do not need to give your renters a 1099. As far as the contractor that did the remodeling on your rentals you do not need to give that person a 1099 for 2010.
But watch out, this changes for 2011. In 2011 landlords/lady’s will need to give a 1099 for work done on rentals so keep track. Remember it is $600 for the entire year so, for example if someone does repairs of $200 in February and $500 in November then you will be required to give them a 1099.
There is some controversy in Washington about the 1099 requirements in Obama Care but that does not affect this requirement. In addition Congress just increased the penalty to $295 for each 1099 not prepared.
Let me know if you have any other questions. It is a pleasure serving you.
Larry Kopsa CPA
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