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NEW IRS 1099 REPORTING REQUIREMENTS FOR PASSIVE OWNERS

Gregory S. Brown; National Apartment Association


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Beginning in 2011, passive owners of business concerns (including owners who rent real estate on a so-called “passive” basis, i.e., managing or investing in rental property is not their primary trade or business) should be aware that legislation enacted in September 2010 (P.L. 111-240) will generally make them subject to all present-law 1099 reporting requirements for active owners.  Passive owners will now be required to remit 1099 forms to all non-corporate entities from which they purchase services exceeding $600.  It is estimated that the time to prepare and submit the 1099 forms is minimal and will help the IRS receive an additional $2 billion in tax revenue from vendors and suppliers who do not fully report income at present.  NAA needs to know how this provision will impact you or the members of your local apartment association.  NMHC has issued a new guidance document on the changes, which is available at the bottom of this page. Your input is important so please review this information and then send your feedback to gregorysbrown@naahq.org.

From National Apartment Association http://www.naahq.org/governmentaffairs/issues/Pages/NewIRS1099ReportingRequirementsforPassiveOwnersSeektoCaptureUnderreportingofIncomebyVendors.aspx

 

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