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Recipients of real estate rental income that make payments of $600 or more to a service provider (such as a plumber or accountant) in the course of earning rental income would be required to send an information return (generally, Form 1099-MISC) to the IRS and to the service provider.

Your reference is the instructions for the 1099-MISC: http://www.irs.gov/pub/irs-pdf/i1099msc.pdf.

To me it's ambiguous regarding rental real estate. Clearly it's an operation for profit, which would seem to require issuance, but the term "trade or business" is usually used in connection with such things as self-employment, which rental real estate clearly is not (except for real estate professionals).

Any thoughts from the pros?

Phil
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