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Author: donstim Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 124960  
Subject: Re: Loan made to another party Date: 1/3/1999 7:01 PM
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This does seem strange. He also has an unsecured loan with a credit union. (The reason he has one with me is that he couldn't get the full amount from the credit union.) He certainly wouldn't issue a 1099-INT to the credit union, would he? Why would it be any different with me?

Thanks, Roy.

Don S.

<<But, and this may seem a little strange at first blush, it is the person who is PAYING the interest that is required to file the Form 1099-INT. So, since you are receiving the interest payments, there is nothing that YOU are required to file. Simply report the interest earned on the loan on your Schedule B, and you have nothing to worry about.

If the loan were secured by real property, then the form that was used would change (IRS Form 1096), and then YOU would be responsible for completing this form.

But since the loan is not secured by real property, it is the responsibility of the person paying the interest to file Form 1099INT.>>
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