2011 Tax Tip

If you have rental property income, 2011 could involve additional paperwork.  An additional reporting requirement was implemented as part of the Small Business Job Act of 2010.  Individuals with rental income will have to issue 1099-MISC for all expenditures for the rental property that exceed $600 in the year to an individual or company.  In short, more paperwork and reporting.  In order to complete the paperwork you will need a Tax ID number of the company or individual you are issuing it to.  I'd suggest getting all vendors to complete a W-9 in case you exceed the $600 threshold with them.  One other consideration is that your tax id number will be required on the 1099-MISC.  For many people, the TIN is their social security number so you may want to consider the security implications.