1099-int by renatal property owner
I know the requirement for rental property owners to issue forms 1099-misc has been repealed but how about form 1099-int (they have a mortgage from a private person). Does this have to be issued?
Thanks
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cpmlFWnYmr4yUOacwZ5xHE
01/04/12 2:29pm PST
Viewed by asker 01/08/12 7:43am PST
Viewed by asker 01/08/12 7:43am PST
5 Replies
01/04/12 2:58pm PST
Are you talking about 1099's or 1098's? The IRS does require 1098's if the property owner is paying interest to a private person.
rcb
01/04/12 3:06pm PST
Sorry, I got that wrong. I was thinking about the mortgage holders (Lenders) receiving mortgage interest income from the property holder.
01/07/12 8:40am PST
The solution
The IRS Instructions to Form 1099-INT (http://www.irs.gov/pub/irs-pdf/i1099int.pdf) say:
"Interest excluded from reporting. You are not required to file Form 1099-INT for interest on an obligation issued by an individual..."
Under the line instructions for Box 1 it says:
"Also include interest of $600 or more paid in the course of your trade or business..." A rental is not considered a trade or business.
Since this is a mortgage from an individual AND it's not a trade or business, you don't have to file 1099-INT.
Skylane
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01/07/12 7:57pm PST
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Private mortgage interest paid not reported on 1098 gets reported on sch a line 11. Seller financed interest received not reported on 1099-int gets reported first on sch b line 1... In each case provide ssn of recipient/payor as appropriate... PS handles this stuff very well.
I'd rather be flying........
