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STEPHAN

Senior Member
What is the name of your state? FL

I am working on my 1099 MISC filing for our contractors.

I just realized that we have a private loan that we used as a down payment for a property. It is not secured by a mortgage. If it was a mortgage, I would have to include it in a form 1098 I guess.

Do I need to include it in a 1099?
 


FlyingRon

Senior Member
I'm unsure of what you are saying. What does "you having a loan" (not sure what that means) and "you making a down payment on a property" have to do with you paying your contractors? Further, unless your contractors are individuals (or partners in a non-incorporated entity) you don't need to 1099 them at all. If you have to issue a 1099, you remit all the money you pay them. It might not all be income to them, but they have to deal with that on their tax forms.
 

LdiJ

Senior Member
What is the name of your state? FL

I am working on my 1099 MISC filing for our contractors.

I just realized that we have a private loan that we used as a down payment for a property. It is not secured by a mortgage. If it was a mortgage, I would have to include it in a form 1098 I guess.

Do I need to include it in a 1099?
Is this a loan that you made to someone, or a loan that you took out? A person/business who made a loan might issue a 1098 for interest received on a mortgage. A person/business that who took out a loan might possibly issue a 1099-INT for interest paid.

You would NOT issue a 1099-Misc for interest paid.
 

STEPHAN

Senior Member
Sorry for my poor wording.

I am very familiar with the 1099 for my contractors who are individuals.

On the loan: Someone else gave me and my wife money that we invested in a property and we are paying interest to him.
 

FlyingRon

Senior Member
Oh, OK. The loan has nothing to do with your contractor's 1099. What sort of entity are you? If you are a sole-proprietorship, then no, you are not required to fill out a 1099 for interest you pay in this situation. Read the instructions for the 1099-INT form for more details: https://www.irs.gov/instructions/i1099int
 

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