Menon Accounting Solutions,CPA, LLC
Taxpayer Bill of Rights
Each and every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. Explore your rights and our obligations to protect them. For more information please click the link below
http://www.irs.gov/Taxpayer-Bill-of-Rights
New Rules Require Rental Property Owners to Issue 1099s
Expanded 1099 Reporting After 2011
Currently, payments to corporations are excepted from the 1099 information reporting requirements, but starting for payments after December 31, 2011, businesses (including, now, individuals who receive rental income) will be required to file an information return for all payments aggregating $600 or more in a calendar year to a single payee, including corporations (other than a payee that is a tax-exempt corporation). That act also expanded the information reporting requirements to include gross proceeds paid in consideration for property.
New IRS Rules May Offer Tax Breaks for Property Owners
Usually repairs expenses that increases the value or restores the property must be capitalized and depreciated over a period of years.
Under the new regulations, repairs made during a time when a property is being renovated or rehabilitated may be deducted if they were not incurred because of the improvement. Also an owner in this situation is not required to capitalize and depreciate the amount paid for the old part while also capitalizing and depreciating the amount paid for the new one. If you are a property owner and plan on replacing a structural
component or renovating a tenant’s space, contact our office to see if the temporary regulations can help deliver sizable tax savings.