Written by Forrest Wall, CAE, Staff Vice President and Industry Relations
1099 Repeal Passes Congress
In a victory for the rental property industry, NAHB and AAM supported legislation recently passed by the U.S. Senate to repeal the federal 1099 provisions in the Small Business Jobs Act of 2010. You will recall from previous articles that this act required rental property owners to issue Forms 1099 to service providers for payments of $600 or more during the 2011 calendar tax year. Also repealed via this legislation is the broader 1099 requirement enacted under last year’s health care reform law (the Patient Protection and Affordable Care Act), where starting in 2012 businesses would need to file a 1099 for each vendor from whom they purchase more than $600 in goods over the course of the year. The repeal legislation was passed previously by the U.S. House of Representatives, so as of this writing it was awaiting President Obama’s signature, which was expected shortly. All members are encouraged to communicate with your CPA and/or in-house accounting staff to implement this change as soon as it becomes law.
Have A Builder’s License? Don’t Forget Your Continuing Competency
Many AAM Members hold a Michigan Residential Builder License even though they may not be actively building. If you are one of these individuals and you wish to maintain your license, please remember that the State of Michigan now requires you to complete three hours of “continuing competency” by your renewal deadline of May 31, 2011. AAM and BIA are holding three hour classes (covering each of the required categories – one hour codes, one hour legal and one hour safety) which will provide you what you need to be compliant. Please contact me (forrestw@builders.org) for more information about this requirement.