In early February, I shared about a new IRS law that would effect those who own rental properties, where a 1099 would have to be given to anyone who worked on that property if the total amount of work they did was over $600 over any year.
The U.S. House of Representatives voted to repeal the provision, which is located in the healthcare reform law. The repeal provision is called “Small Business Paperwork Mandate Elimination Act, H.R. 4”, according to an article by the Baltimore Business Journal. The Senate passed their version of a repeal last month.
The law as it was passed earlier this year, adding to bill H.R. 5297, would require any small business owner who hires a contractor and pays them over $600 for work in a year to provide a 1099 to that contractor, and file paperwork for tax purposes.
This would include any rental property owners, as they would be considered small business owners under the new provisions. That new rental property law could create issues for many homeowners who may rent out even just one property!
This is wonderful news, and I look forward to hearing it has been signed into law to save Baltimore rental property owners from having to take on this trouble.