1099

[solomon]

The 1099 reporting for Owners of Rental Property paying $ 600 or more in services, i.e. plumbers, painters, handymen, etc, does not take effect for payments made until after Dec 31, 2010, correct???

Thereby if in effect after Dec 31, 2010, it will be Form 1099 reporting for 2011 issued in January 2012, correct?

sorry I am having "issues" keeping track of all of these various dates, and categorizing in my brain and timetables.

If the above is correct, then as someone else pointed out, W-9 forms are going to be "flying" around trying to acquire the much needed information for year 2011 which is just around the corner.

Guess a lot of "service" people will not be working, or the owner's will not be deducting the expense for year 2011...

Sandy

You do have the dates correct. At the same time, if a landlord paid a service person with a credit card, then this payment method obviates the need for a 1099.

[newbie]

Guess a lot of "service" people will not be working, or the owner's will not be deducting the expense for year 2011...

Sandy

I don't get it, so if it will be traceable "service" people won't be working because now they'll have to report the income just like we do?

I'm guessing to be a minority but I don't think it will be that great of a burden to the majority of rental owners and I think it's a good thing to trace service income.

We have too many people doing side jobs, making the true small businesses appearing as thieves at the hourly rate "they/we" charge. What they don't understand is the legit businesses pay SE tax, insurance, payroll, etc... Heck if I can stick it in my pocket and not pay taxes and overhead I can charge a lot less too.

Others not reporting the income and collecting unemployment to boot. These people are stealing from from all of us.
JMO

[JG EA]

The 1099 reporting for Owners of Rental Property paying $ 600 or more in services, i.e. plumbers, painters, handymen, etc, does not take effect for payments made until after Dec 31, 2010, correct???

Thereby if in effect after Dec 31, 2010, it will be Form 1099 reporting for 2011 issued in January 2012, correct?

sorry I am having "issues" keeping track of all of these various dates, and categorizing in my brain and timetables.

If the above is correct, then as someone else pointed out, W-9 forms are going to be "flying" around trying to acquire the much needed information for year 2011 which is just around the corner.

Guess a lot of "service" people will not be working, or the owner's will not be deducting the expense for year 2011...

Sandy

Good reminder. Starting next month, we should be giving our rental property owners W-9's and explaining new requirements. I also plan to tell them they can call the IRS and get the 1099/96 forms or we can prepare for them and that we need just the amounts and a copy of the W-9 by 01/15/12 and then we can prepare for them for $(Cheap enough price so it'll be easier to have it done). I'll give them a separate bill for that prep work so they won't think their tax prep has gone up too much. It's starting Next month!

[taxea]

update

Unfortunately repeal of this law was voted down yesterday however, that only means that we have to wait until January to see whether the new congress trys again to repeal it.

[monal]

pasture rent

if renter pays his pasture rent by c heck dated 12/31 /2011 and landlord does not receive until Jan 3rd 2012...is landlord required to include income in 2011 income or 2012....client has previously included it as receiving when received . Previous tax preparer did not issue a 1099 for this rent in the past.

[Jesse]

If cash basis the landlord would report the income when the check was received.

Whether or not a 1099 Misc was or will be issued should not matter to the landlord, however, if you know a 1099 is issued you may want to attach an explanation to the return stating that although the 1099 Misc was issued the check was not received until January to reconcile the reporting.

I had a similar situation with a schedule C return so to avoid matching I added it to the income and then subtracted on page 2 stating something like "1099 Misc issued but check received 01/xx/xx".