RENT Magazine Q3 '24

IMPORTANT 1099 UPDATES FOR LANDLORDS IN 2024

Navigating the complex landscape of tax regulations is part and parcel of our profession. One area that continues to evolve and requires keen attention is the 1099 requirement for landlords. For 2024, several updates and crucial points must be understood to ensure compliance and optimize tax strategies. This article will provide an in-depth look at these requirements and offer practical advice for landlords.

1099 reporting requirements have a new threshold of $600 for rental income. It was previously $20,000.

Best Practices

• Before working with a service provider, collect a W9

• Pay contractors by credit card or a third-party payment network because a taxpayer does not report those payments on Form 1099 -NEC pursuant to Treas. Reg. §1.6041-1(a)(1)(iv)

• Keep copies for a minimum of 3 years

• Use software that offers e-delivery and TIN matching

FILING DATES Section 6071(c) requires you to file Form 1099-NEC on or before January 31, using either paper or electronic filing procedures. File Form 1099-MISC by February 28 if you file on paper, or March 31 if you file electronically.

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