New 1099 Reporting Requirements Repealed

Some sections of legislation passed last year are undergoing repeal as President Obama is scheduled to sign the bill H.R. 4 soon. Specifically now being changed is a requirement that all rental property owners, even individuals renting a second home, would have to file a form 1099 for any vendor/contractor that’s paid more than $600 in a year. Similar legislation repealed also would have applied for all businesses to provide these 1099s for any expense over $600, even to large corporations. While the intent of the bill was commendable to ensure more compliance with income declaration, it became clear that the reporting requirements were overly severe and constricting to small business owners and individuals. Existing laws still require this reporting of rental property expenses to a single vendor over $600 but is limited to those operating a business in this area of specialty.

UPDATE: The bill has been signed into law by President Obama.

Stephen Woodall
REALTOR, GRI @ Long Realty Company
Stephen has made real estate his full-time career and passion since 2008, primarily specializing in the Foothills & the Northwest Tucson areas of Oro Valley and Marana. He is a multi-million dollar producer, representing both sellers & buyers. Stephen has tremendous experience in new home sales, listing & selling primary residences, listing & selling vacant land, listing & selling luxury homes, investment properties, rentals, and real estate development parcels.

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