IRS and Carbon Monoxide: Two 2011 laws landlords and property managers need to know.

Posted: December 13th, 2010  

Do you have carbon monoxide detectors installed in your
rental homes? A new state law requires single family residences,
condos and town homes to have carbon monoxide detectors installed
by July 2011. Failure to comply with this regulation exposes Orange
County landlords and property managers to significant liability. In
2011 a fully functioning carbon monoxide detector is just as
important as a smoke detector. Another law passed at the end of
2010 could prove costly to unprepared landlords. Property managers
and individual rental property owners are required to collect tax
ids and report payments to the IRS on all vendors and property
servicers when payments for the year exceed $600. If you don’t
currently have the tax id numbers for you gardener, pool cleaner,
plumber, electrician, or handyman it is time to gather them. Along
with stiff IRS penalties for non compliance, it’s believed the IRS
may even reject landlord expense deductions if there is no
associated vendor 1099. While many property owners see this as a
major burden, we are proud to declare that Coldwell Banker Platinum
Property Management has conducted this type of reporting for years.
It is just one more service our clients enjoy for our management
fee of just 5% of the rent we collect. Please call us, Coldwell
Banker Platinum Property Management, with your Orange County
property management questions. 714-552-8687 (call or text). NOTE:
None of the preceding information should be construed as tax or
legal advice. Please consult your attorney or accounting
professional with questions specific to your situation. -Brian
Donlyuk -Director of Property Management

Leave a Reply