Form 1099-Int--Buyer or Seller file it?

"barefooter" wrote

The person or business paying the interest would issue the 1099 if they are required to do so.

You can prepare your returns based on the interest income you know you received. You have an amortization schedule, yes?

If you are a private individual, and NOT in the business of making money off of interest, then you have no requirement to issue a form 1098! (not

ChEAr$, Harlan Lunsford, EA n LA

Probably no one, but if anyone does, it would be the person paying the interest. See the instructions for the 1099 series.

If this is mortgage interest you would have the obligation of filing a 1098 only if the interest income was in the course of your trade or business. See the 1098 instructions.

And the payor would file a 1099INT only if paid in connection with his trade or business, e.g. the property in question being used as a store building maybe.

ChEAr$, Harlan Lunsford, EA n LA

Thank you, Paul A. Thomas, Harlan Lunsford and Phil Marti, for answering my questions.

To be more specific:

(1 )My step-mother sold property south of Dallas for $300,000, and she is carrying a note for $250,000 at 10%.

(2) She does have an amortization schedule, and I have a copy of it.

(3) She is not in the business of selling real estate

THUS THE FOLLOWING APPEARS TO BE CORRECT:

(1) She needs to do nothing concerning the interest she received other than report it as taxabble income. That is, she is required to file no forms, including Form 1098 or Form 1099.

(2) The purchaser of the property should determine what he should or should not do.

Is the above correct? (I am an idiot, so I ask the question, etc...)

text -

address & SSN of the payer.

of the payer.

Not always true; only if the buyer is using the property as a personal residence.

ChEAr$, Harlan Lunsford, EA n LA