Thursday, January 13, 2011
Small Business Jobs Act
Landlords are effected by the new Small Business Jobs Act. The new law requires landlords to track information about contractors that have been hired to perform services to rental property that exceeds $600 a year. The new law takes effect January 1st 2011. This law includes mom and pop landlords of both residential and commercial properties. If the landlord fails to provide the 1099 form and the contract information it is expected that they will not receive the deduction on the taxes. Landlord will be required to provide 1099 to all contracts that meet the new criteria of the legislation. Contractors can include but are not limited to landscapers, accountants, painters, plumbers, etc.
The new law will help the government accurately track contractor income and discourage landlords from make false deductions for services and repairs. It is expected to increase federal tax revenue over 2.5 billions dollars in the next 10 years.
Some of this information was provided by AllBusiness.com
The new law will help the government accurately track contractor income and discourage landlords from make false deductions for services and repairs. It is expected to increase federal tax revenue over 2.5 billions dollars in the next 10 years.
Some of this information was provided by AllBusiness.com
