2 New Laws Orange County Property Owners Need To Know
We strive to keep our real estate clients and potential clients informed on the latest industry news. We are real estate professionals, not lawyers or tax professionals. The following information should not be construed as tax or legal advice.
Carbon Monoxide Detectors
HOMES NEED CO DETECTORS BY JULY 1, 2011. California passed SB183 in 2010 requiring installation of carbon monoxide detectors in existing homes that have fossil fuel burning appliances, ﬁreplaces, or attached garages by July 1, 2011. All other homes have until January 1, 2013 to comply.
We recommend installing one CO detector on each living ﬂoor, out of the reach of children. All CBPP Property Management clients will have detectors installed by our maintenance crew prior to the July deadline.
New IRS Requirement
LANDLORDS REQUIRED TO 1099 VENDORS AND SERVICE PROVIDERS. The Small Business Jobs Act, passed in late 2010 requires all owners of rental property to issue a 1099 to all service providers who are unincorporated and receive at least $600 in compensation for the year. Failure to report the payments made to a gardener, plumber, handyman, pool guy, etc. could lead to stiff ﬁnes and penalties. It’s also believed that, in the event of an audit, the IRS may invalidate any deductions an owner failed to report via 1099.
The good news for our clients is we have conducted this type of reporting for years. For landlords who self manage their properties, this requirement could be a paperwork and reporting nightmare as they now have to collect tax ids and report 2011 payments.