Saturday, December 4, 2010

Landlords with New 1099 Tax Filing Requirements

If you are a commercial or residential landlord, you will have new 1099 tax filing requirements with the Internal Revenue Service starting in 2011.  IRS logo

All landlords who receive rental income of more than $600 a year from a tenant must file a IRS Form 1099 information return for all rental income received and send a copy of the 1099 to the tenant.

landlord tax filingsLandlords must also send a 1099 to all service providers who received payments of $600 or more during the year, such as plumbers, carpenters, gardening services, and repair people.

This new requirement applies to owners of both residential and commercial property.  The exception to this new requirement is when an owner temporarily rents out his/her primary residence, as long as the owner's income does not exceed a "minimal" amount to be determined by the IRS.  1099 tax filings now required

Prior to 2011, this 1099 tax filing requirement only applied to people involved in full-time property management.  But now this filing requirement covers all landlords (including small investors).  So Landlords will need to get the federal tax ID numbers from both their tenants and service providers in order to file the 1099s. 

The National Association of REALTORs® opposed this change in the law and worked with others to have this requirement repealed or modified.  To see more about history of this new law and action by the National Association of REALTORs®click here.  

If you want information or have questions about your situation and this 1099 filing requirement, contact the Internal Revenue Service.


This is for information only and not the providing of tax or legal services.  If you want or need more information, please contact your income tax professional or the Internal Revenue Service.

Harrison K. Long - Business Solutions and Advisory - REALTOR® and broker associate, Coldwell Banker Residential Brokerage, Irvine, CA - 949-854-7747 (phone) - CA DRE 01410855 - (email) 

Posted via email from Explore OC Homes


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