Own a home that you rent out? Congress is voting this week on a tax…..

Congress is voting this week on a real estate tax that could effect you! 

Congress may vote this week on a spending and tax measure that could include a harmful tax provision directly affecting real estate.  It would require that ALL landlords provide an IRS Form 1099 to all contractors they do business with if they pay that contractor $600 or more in any given year. The proposal would apply even to those who own just one property. This is a trap for the unwary. 

Many clients only own and rent out homes to supplement their income, any proposal requiring them to file Forms 1099 would impose new expenses and subject them to penalties they are ill-equipped to pay. Frequently small landlords don’t use tax professionals; if adopted, this proposal could force them to incur the expense of hiring tax professionals. This proposal is burdensome.

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