[silverleaf]

“Section 2101 of the bill accomplishes this by considering anyone receiving rental income as “engaged in a trade or business.”

actually, that’s an improvement over us evil landlords receiving “unearned income”

but I don’t get this - we already have to be prepared to document every expenditure on the property to claim it as an expense

[justlurking]

we already have to be prepared to document every expenditure on the property to claim it as an expense

The purpose of this 1099 is not to document your expense. It's to document the income for the person/business that you paid.

The IRS is going to match these 1099's against the income that is reported -- just like they do with W-2's.

[PeterPrinciple]

but I don’t get this - we already have to be prepared to document every expenditure on the property to claim it as an expense

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Technology is replacing people who know things. There are no knowledgeable people at IRS, only worker bees. We used to get letters asking to explain a discrepancy. Now they automatically bill you.

The computer will match all the 1099’s you filed, compare that with the expenses on your schedule c f or e and send you the bill for the difference.

DID YOU KNOW THAT THERE IS A STATEMENT IN THE HEALTH CARE BILL STATING THAT IRS HAS THE AUTHORITY TO DECIDE WHAT A REASONABLE BUSINESS EXPENSE IS. Good by tax court and laws passed by legislation.

[PeterPrinciple]

Section 2101 of the bill accomplishes this by considering anyone receiving rental income as “engaged in a trade or business.”

actually, that’s an improvement over us evil landlords receiving “unearned income”

but I don’t get this - we already have to be prepared to document every expenditure on the property to claim it as an expense

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It also means you will be paying medicare tax on that income and we all know you will soon be paying social security tax on that income....................

Words have meanings...............