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Seller Financed Mortgage - Does the seller issue a 1099?

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    Seller Financed Mortgage - Does the seller issue a 1099?

    Do the Seller issue a 1099 for the interest received to the Buyer?

    Thanks

    Chris

    #2
    well, the buyer reports interest paid on his schedule A and the seller reports interest received on his schedule B (with SS numbers ) , so IMO no need for 1099INT.

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      #3
      Originally posted by spanel View Post
      Do the Seller issue a 1099 for the interest received to the Buyer?

      Thanks

      Chris
      I think you have this backward. The buyer is the one paying interest, so the 1099 would go to seller. As a general rule, unless it's business property to the buyer a 1099-int is not issued.

      Comment


        #4
        Interest received

        Perhaps the form which may be required is a 1098-INT.
        Friends double; family triple. Don't buy an audit for yourself. If someone has to go to jail make sure it is the client. Remember it is only taxes, nothing important.

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          #5
          Originally posted by mastertaxguy View Post
          Perhaps the form which may be required is a 1098-INT.
          Only required if the interest received was in the course of a trade or business.

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            #6
            Both of my sellers on a Real estate mortgage wants the 1098's filed so that there is no question as to what is being reported by who. I once saw this come into play when a payoff was requested by the buyer.

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              #7
              I would do it

              Not required, but I assume it is not prohibited. Thus I would do it and charge them for it.

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