WITAXLADY Posted March 20, 2016 Report Share Posted March 20, 2016 so brothers buying land - pay amount of principal plus interest - on their own parent corp issues a 1099 for amount they paid and give them the $$$. brothers also have W-2's from corp. How do they show interest? against 1099? 1099 as rent of land? Cannot seem to wrap my head around this - former preparer showed it as insurance payment... insight please, scenarios? Thank you, D Quote Link to comment Share on other sites More sharing options...
WITAXLADY Posted March 21, 2016 Author Report Share Posted March 21, 2016 any ideas? they are coming back Mon afternoon Quote Link to comment Share on other sites More sharing options...
jklcpa Posted March 21, 2016 Report Share Posted March 21, 2016 I don't understand the "parent corp" involvement in the transaction or why it is issuing a 1099. Is the corporation renting land from the individual owners? Could you clarify that, please? Who is the actual owner of this land being purchased? If the land is titled in the individual names, it seems to me that the interest should be reported as investment interest expense on Form 4952 unless the corporation is actually renting the land, and then you have rental on Sch E with the interest expense being reported there. 1 Quote Link to comment Share on other sites More sharing options...
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