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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10108
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Broker statement has 'non qualfied interest' of $3,000. This

Customer Question

Broker statement has 'non qualfied interest' of $3,000. This is not part of what is reported as interest income. Where does this get reported if not on Schedule B?
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

Hi,

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It is not typically reported at all.

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For example, A REMIC (in order to remain a qualified investment for tax deferral purposes) must pay a 100% tax on any de minimis nonqualified interest received.

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You should not have received any actual nonqualified interest income -- so, there would be nothing upon which to pay taxes.

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If you think that you actually received, physically received interest, then you WOULD have to report and pay. But this would be an anomaly (such as a REMIC or other vehicle not reporting correctly)

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You should be able to determine whether or not you actually received the amount of tax which was reported on the 1099-INT. And, if it's more than the amount reported, then the you may want to pay taxes on that amount, because something is wrong, somewhere -- with the accounting and tax reporting.

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99.99 of the time this is neither reportable or taxable

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Let me know if you have questions

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Lane

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If this HAS helped, and you don’t have additional questions on this, your positive rating … (by clicking or touching the stars or smileys on your screen) … would be appreciated!That’s the only way I'll be credited a portion of what you've paid JustAnswer.

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Expert:  Lane replied 1 year ago.

Hi did you see my answer?

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Let me know if you still have questions

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Lane

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