Posted on 09/30/2010 12:46:14 PM PDT by bbernard
(CNSNews.com) – Millions of Americans who own rental property are in for a bit of a rude awakening, beginning in January.
Congress has presented a bill to President Obama that would expand the IRS Form 1099 reporting requirements set out in the health-care reform law to include private citizens who own rental property.
The Patient Protection and Affordable Care Act, President Obama’s health care law, requires that small businesses file a Form 1099-MISC with the IRS for any goods they purchase from an outside vendor valued at over $600.
But the new bill, the Small Business Jobs and Credit Act (H.R. 5297), extends the mandate to private individuals who own property from which they receive rental income. Those people would also now have to fill out paperwork reporting any expenditure they make on that property valued over $600 for the year.
Section 2101 of the bill accomplishes this by considering anyone receiving rental income as “engaged in a trade or business.”
(Excerpt) Read more at cnsnews.com ...
Trust me, You will not be alone!
We simply need to abolish the federal government. It has overgrown its purpose and usefulness.
The electronic filing is just the A copy. You still have to stuff the B copy in an envelope and mail it to the recipient. Keep the C copy on file for at least 3 years”
We do all that mailing now. Like I say, it is less than 10 usually.
With the new rules, if my Maytag dealer sells a washer or dryer & has to send a 1099 to each customer, that will put us above 250.
I will have to stop doing his bookkeeping or there will have to be a service that comes into this chain of disaster that will prepare the data in the form the Feds will accept.
I surely cannot spend any serious amount of money to create fancy ‘electronic’ forms when the whole annual value of what I do for him is rarely above $600 even to me.
Good point.
they’re not doon’ it raht....what part of RE PEAL do they NOT understand about this provision....
From my reading of the health care bill, it is at least mostly true. I cannot remember all the details beyond the health care plan payment by the company is now taxable income.
I've been exploring the idea of starting such a service. But with the uncertainty of whether or not the new 1099 law will be repealed, it's not worth the business risk.
JURY NULLIFICATION
I think it was in the financial non-reform bill, actually. Banks are required to submit all transactions now.
“This way landlords are sending 1099s to Home Depot, the utility company and the mortgage company. This is ridiculous.”
What better way to justify post office budget increases?
“In the health care bill, all your credit card transactions will be reported to the federal govt. The federal govt will share this with the states and you will all receive an itemized listing of all the out of state purchases you made and a bill for the use/sales tax you didn’t pay. States have been wanting this information for a long time, now they got it and you get a bill.”
This is news to me. I wouldn’t be surprised, though.
Would that be for this year or next? Do you have a link or some such that explains this?
Well it does not look like a roll-your-own for a script kiddie.
One would reply with an accounting of such purchases as they would be taxed under the tax code, with such supporting information as web merchant confirmation emails, screen shots, packing receipts, etc. to account for the credit card transactions the state is pointing at. Enough people do that and state tax departments will be snowed under.
So lemme get this straight. So rather than remove the onerous 1099 requirement on small business, these Demoncrats are actually expanding it? Are they TRYING to lose in November?
Well, advertising mail is supposedly the USPS’s biggest cash cow. But I can’t seem them complaining about a burst of first class mail, paid at first class postage rates.
The Bummer can do anything to get rainbow riding unicorns to poop skittles out of the sky.
Raising the taxes on the middle class through the back door. So if you make $100K now you can deduct medical expenses above $7K. Thanks to Obama it is now $10K.
Don’t forget the 3.8% tax on passive income. If you do not actively manage your rental property it is considered passive income (not trade or business). I wonder if you have a management company, but you pay all the bills, is that passive income for purposes of the 3.8% tax, while still considered a “trade or business” for purposes of the 1099 reporting requirements?
I got this e-mail today. Anyone know if it is true?
Only partially true, and not the part that is the most concern. The new rule is that the cost of health insurance is to be reported on the W-2, but not as gross income. Currently, your employer is required to report other items, like 401(k) contributions, on your W-2, but you are not taxed on them. There is a limit to the contributions, so that is why they are reported. So, now the government wants to know how much your health insurance plan is. This is probably either to make sure your coverage meets their minimum or in preparation for taxing you on it, either one not good. But, so far, that amount will not be added to your taxable income.
One would reply with an accounting of such purchases as they would be taxed under the tax code, with such supporting information as web merchant confirmation emails, screen shots, packing receipts, etc. to account for the credit card transactions the state is pointing at. Enough people do that and state tax departments will be snowed under.
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