landlord's will need to prepare 1099s

[Account Closed]

Under the new legislation designed to help small businesses was a small add on that is now going to require landlords to issue 1099s to any contractor performing services like repairs over $600.

http://www.allbusiness.com/government/government-procedure-lawmaking-legislation/15166028-1.html

[Steve Babiak]

And to clarify what Charles mentioned, it's for TOTAL paid to anybody over $599. So, if your plumber comes out a few times for $200 each trip, you will exceed the threshold and you'll need to generate that 1099.

Now, in 2010, you will not have to do that if the recipient is a corporation (C or S); you have to 1099 any LLC or sole proprietor.

The change for 2011 is that even corporations will need to be sent a 1099.

And to properly issue a 1099, you will need to get a W-9 filled out (to get Tax ID and to determine if recipient is exempt from withholding - which would be at 28% I believe).