If you have rental property then you file a Schedule E with your tax return. Effective January 1, 2011 you must issue a 1099 to any service provider that you pay $600 or more to over the course of the year. Service providers include lawn maintenance, pest control, pool maintenance or anyone doing repairs.
All service providers need to complete a W9 form (available at www.irs.gov) which has their name, address and social security number or EIN for their business. Without the 1099s the IRS will not allow you to write off of the expenses on your tax return. The 1099s need to be mailed by January 31, 2012 for the 2011 tax year.
Need help or have other questions call us at 702-796-1040 or email us at kathy@kattax.biz or larry@kattax.biz. Thanks
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