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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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I purchased farmland on contract. Do I need to send a 1099

Resolved Question:

I purchased farmland on contract. Do I need to send a 1099 form for interest paid in 2008.
Submitted: 8 years ago.
Category: Tax
Expert:  Merlo replied 8 years ago.

Only interest payments made in the course of your trade or business are reportable on a 1099 form. Interest payments made for pesonal loans or loans related to the personal purchase of property are not reported on a 1099.

You will still deduct the interet on your tax return, and will show the name and social security number of the person you paid the interest to. That will be sufficient for your reporting the amount of interest you paid and who it was paid to.

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