Topic 415 – Renting Residential and Vacation Property
I recently met with a new Super Bowl Homeowner in Goodyear, one of whom works in the financial industry. He questioned the need for a 1099 for ‘Rental Income’, and contacted his CPA and Tax Accountant to validate that if one rents their personal residence for ‘less than 15 days per year’, it is not necessary to report the expenses nor the income to the IRS. View further information about rental income on the IRS website.
Now that being said, there are still responsibilities for a Property Management company, one of which is to issue 1099’s for rental income. I have spoken with Colleen and we will work together to find a solution, potentially having you sign an Addendum or Waiver at the time you are to receive your rental funds, stating you have NOT rented out your property for a period of up to 14 days by payment date of February 8th, 2015, therefore not requiring a 1099. From that point forward, should you rent out your home again during the year, it would release us of the obligaton to have issued you a 1099, and would be your responsibility to declare any subsequent rental income you earn.
This is exceptionally good news for Super Bowl Homeowners, and I would like to state, for the record, that there would be some exceptions to the rule, namely with homes being rented that are not primary residences, and potentially also condominiums and listings that have proposed durations longer than 14 days. Should you have questions, we would be happy to discuss them with you and given that we are not accountants, or tax experts, we recommend you consult with your Tax Accountant or CPA to verify your own personal situation.
I would like to take this opportunity to thank our new Goodyear Super Bowl Homeowner who took the time to research, and I know that everyone is most appreciative with this new information.
Rest assured that Colleen and I will discuss this further and have something put in place to support Topic 415, before 2015.