New Taxes on Real Estate?

I just sent a letter to Congress along with some other fellow Realtors.  The San Diego real estate market is very fragile right now and adding little fees here and there can only be harmful when we’re trying so hard to turn it around, stabilize it and keep our recovery on track.

Here are the proposals, see what you think.

First of all, all landlords will be required to provide an IRS form 1099 to all contractors they do business with if they pay that contractor $600.00 or more in any given year. 

What does that mean?

So if you bought a second house to use as a rental and supplement your income with San Diego real estate, to file form 1099 would impose new expenses, subject you to penalties, and force you to incur the cost of hiring tax professionals.

Secondly, a real estate investment gain would no longer qualify for capital gains treatment.

Send an email to [email protected] if you have questions or need to names of Senators to contact.