1099-int

[Burke]

TP sold a house, on which there was a $30K note (mtge) to an individual. All Interest paid at closing, $3,000. Should he have given him a 1099?

[Jesse]

I vote no

If not a trade or business I say no 1099 necessary.

[bgiez]

The instructions for 1099-INT say "Report only interest payments made in the course of your trade or business including federal, state, and local government agencies and activities deemed nonprofit, or for which you were a nominee/middleman." But, if I read your post correctly, the TP received the interest, and it would be the person to whom he sold the house who would prepare a 1099-INT if that person was a business.

[Gretel]

Wait a second. Aren't we talking about a 1098 - Mortgage interest received? I still think that only banks (businesses) need to issue them but the instructions should give an answer to that. After all, Schedule A provides for deducting mortgage interest with no form received.

[BP.]

Wait a second. Aren't we talking about a 1098 - Mortgage interest received?

No. Burke's question was for reporting mortgage interest from payer to recipient. 1098 is the other way around. I read the post as his taxpayer PAID the interest due on the note at settlement.