Dennis Norman
As the real estate market and industry continues to struggle to try to pull out of the dumps, another blow could come soon from Congress in the form of new tax burdens on real estate.
Congress is proposing that all owners of rental properties be required to complete and file 1099 forms for all service providers that have performed work on their properties, such as electricians, handymen, landscapers, etc. If passed, this would require all landlords, even the smallest of which, to go through additional expense and burden (or face penalties themselves from the IRS) to comply with this requirement.
The second issue, and perhaps one with a bigger negative impact, is to tax “carried interest” at ordinary income rates instead of the lower, capital gains rate. This would affect landlords and other investment/income property owners when they sell their property and realize the profit from their investment.
The National Association of REALTORS has come out in opposition to these two changes and has summoned their members to contact their Congressmen and Senators and urge them to oppose these two changes, hopefully Congress will listen.
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