The new landlord provision requires all taxpayers owning rental properties to issue a Form 1099 to any unincorporated service providers (e.g. plumbers, painters, accountants) they pay $600 or more to in a year, beginning with payments made in 2011. Those 1099s (typically, a 1099-Misc) would, of course, have to be sent to the Internal Revenue Service as well.
via Forbes.
Variations of the homebuyer tax credit have generated more than $19 billion in tax breaks for over 2.6 million first-time homebuyers since the programs began in July 2008. However, due to a combination of recording errors on the IRS’s behalf and home buyers attempting to circumvent the system, it looks like nearly half of the people that received money from the credit may have to return it.
via Zillow News.
The total bill for the homebuyer tax credit so far, as reported by the Internal Revenue Service, stands at $23.5 billion.
About $16.2 billion of that is for the $8,000 (Recovery Act) and $6,500 (Assistance Act) grants shelled out to first and second-time homebuyers, respectively.
via REO Insider.
Members of Congress from both parties have taken notice, and the Senate is scheduled to vote Sept. 14 on two amendments to an unrelated bill: One would eliminate the 1099 provision; the other would exempt businesses with fewer than 25 employees, raise the reporting threshold to purchases above $5,000, and exclude those made with a credit card. A 60-vote majority would be required in both cases.
via-washingtonpost.
At issue is a section of the Patient Protection and Affordable Care Act that requires all businesses to send 1099 tax forms to every company or individual from which the business purchased more than $600 in goods and services starting in January 2012. “This expensive and burdensome new paperwork requirement has no connection to health care, but was included as an attempt to generate revenue–$17 billion over 10 years–on the backs of small businesses,” NLBMDA said in an alert e-mailed Wednesday
via NLBMDA
A dilemma every real estate investor who buys and sells property for short term gain faces, is how to proceed if the property does not sell. Most of my clients understand the importance of using a corporation for their short term investing to avoid the dreaded “dealer” classification.
via biggerpockets.com.
