New Landlord Requirements for Section 199A Tax Deduction

There are new requirements for landlords to qualify for the Section 199A deduction in 2019.

First, if you use the property yourself a substantial part of the year and rent only occasionally, you cannot take the deduction for rentals.

Second, you must maintain accurate record keeping for the property and not commingle business and personal funds.

Finally, you must issue 1099-MISC forms to vendors (think cleaning services) who charge you $600 or more for the year, and send a copy to the IRS by January 13, 2020.

The penalty for not filing or for missing the deadline starts at $50 for each form, and rises steeply.