Seller Financed Mortgage - Does the seller issue a 1099?

[spanel]

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

Thanks

Chris

[taxmom34]

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.

[kathyc2]

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.

[mastertaxguy]

Interest received

Perhaps the form which may be required is a 1098-INT.

[kathyc2]

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.

[TAX4US]

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.

[Nashville]

I would do it

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