If you are a Landlord of a single unit rental property, a new law now requires you to issue an IRS 1099 form to all Vendors who do at least $600 of work.
This is not a new law, but it has been expanded to all property owners, no matter how small their property is.
If you own a rental, you have a legal duty to obtain certain information from Vendor ( for example, Social Security number or tax identification), and keep a record of the amount you pay them over the year. At the end of the year, you must issue a 1099 form, and keep a copy for yourself.
The requirement takes effect from 2011 tax year, so start tracking Vendors from the beginning of January.
Who is a Vendor?
All contractors and freelance workers who provide services in a rental real estate context ie plumber, painters, cleaners etc. So all providers who you don’t issue with a W2 who provide at least $600 over a year in services.
Remember to keep track of all people who do work for you as this is a cumulative amount over the year.
Speak to your Accountant for more information.