Do you own a rental property in South Orange County? Or anywhere for that matter? First of all, good for you! I think real estate is a great place to invest your money — so long as you buy when the time is right (like now!). Foreign investors are snatching up land up and down the California coast, including in Orange County. They’re taking advantage of low home prices and bank foreclosures and there is no reason you should not be doing the very same!
One thing to know if you already do own a rental property or are planning on investing in one: a new law requires you to issue a 1099 form to the handyman and other vendors who do at least $600 worth of work for you each year on the property. Larger rental property owners have been required to do this for years. The Small Business Jobs Act of 2010 expanded this requirement to include all property owners, no matter how small.
This reporting requirement took effect in January of this year, so if you haven’t already, it’s time to begin tracking the payments you’ve made to your venders! Early next year, you’ll send your vendors the total in the 1099 form to reflect the income you’ve paid them for 2011 and keep a copy of the form for your own records. There are a few exceptions (which the IRS hasn’t completely clarified) to this reporting requirement, so make sure to discuss this new law next time you meet with your accountant.
If you are interested in investing in a fabulous Orange County rental property, call Cheryl Marquis today! From North Orange County to South Orange County and Coto to Laguna, Cheryl can help you find the perfect rental property for you!