Part of being a landlord is tracking your income and expenses. One such expense is paying handymen and contractors to handle maintenance work when it becomes necessary. Not only are you responsible for tracking the work as it progresses and handling the associated bills, but you may also be required to issue the contractor or handyman a 1099-MISC as well.
As a disclaimer, I am not an accountant. You should consult yours to verify your specific tax obligations.
John Compagno has published an article in REALTOR magazine which explains the use of the 1099-MISC in greater detail, including when you need to issue the form, what you need to do to ensure compliance, and the penalties for filing late. I have uploaded a copy of the article as it was published, for your reading pleasure.
In most cases, your property manager will handle the issuing of 1099-MISC forms on your behalf. Be sure to check with them to see what forms they issue on your behalf.
Article reprinted from REALTOR® Magazine February 2011 issue with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2011. All rights reserved.