New 1099 Requirements for Landlords

If you own a rental property or rent out your vacation home, there is a new IRS requirement that will require more paperwork. Under current law, taxpayers whose primary trade or business (for tax purposes) was rental real estate – such as owners of multifamily apartment building, professional property managers, etc. – were subject to the Form 1099 reporting requirements. Landlords not in a trade or business – e.g. owners of a few rental properties or second home used for rental purposes (think beach home) – are treated as engaged in a “passive activity” and are not subject to the Form 1099 reporting requirements. That’s all about to change…