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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29656
Experience:  Taxes, Immigration, Labor Relations
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I have provided a loan to a business I was working at. They

Resolved Question:

I have provided a loan to a business I was working at. They are paying me back for a little less than the original principal but at least I'm getting my money back. They will pay 1/2 this year and 1/2 in 2011. How do I account for this tax-wise. How should they note these payments as I don't want to get a 1099 since I have already paid tax on this money in the first place and I'm only getting the principal back and no interest.
Submitted: 7 years ago.
Category: Tax
Expert:  Lev replied 7 years ago.

If you will just get back a principal of your loan - and there is no interest income - there is no taxable income for you.

Your company should not issue 1099 form for the amount of a loan they are paying back.

Be sure - you clear communicate that with the company - and there would not be any income reporting.


Let me know if you need any help.


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