As I mentioned in an earlier post, in 2013, some lucky Landlords will face the new “3.8% tax” on investment income. This legislation is unlikely to be affected by the “financial cliff” legislation (read: “Bush Tax Cuts”) that is the topic of so much news right now and so landlords need to get familiar with the rules.
income tax
Now that the election is over… let’s talk about that 3.8% Medicare tax
I hesitate to get political here, so now that the nation has decided how it wants to go for the next two to four years, let’s talk about the Patient Protection and Affordable Care Act, also known as “Obamacare” or “Obamatax” depending on your particular side of the aisle. Starting next year (January 1, 2013), Obamacare (for lack of a better shorthanded term for it) brings America a new three point eight percent (3.8%) Medicare tax imposed on certain investment income.
Landlord 1099 relief gets a step closer
CNN reports that the Senate today passed legislation known as the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 (that’s a mouth-full) to reform the burdensome changes implemented in the Small Business Jobs Act of 2010 (aka SBJA) and the 2010 Patient Protection and Affordable Care Act. The law now … Read more
New 1099-MISC Reporting Requirements and Possible Relief
The Small Business Jobs Act of 2010 (aka SBJA) enacted by President Obama in September, 2010 and the 2010 Patient Protection and Affordable Care Act (health care reform aka PPACA) both contain new 1099 reporting requirements that affect landlords. These two laws expanded IRS Form 1099-MISC reporting requirements – the SBJA dealing with landlords and services / service providers and the PPACA dealing with landlords and goods.