Max W Posted February 3, 2017 Report Share Posted February 3, 2017 Client purchased a consulting business with a loan from the seller. Client is a Sch C filer and the contract is between two individuals. Seller wants client to issue a 1099-INT. Interest is over $600. IMO, the 1099 is not necessary or required. Any thoughts? TIA Quote Link to comment Share on other sites More sharing options...
Lion EA Posted February 3, 2017 Report Share Posted February 3, 2017 I would keep the seller happy while still under a loan contract with the seller. Issue a 1099-INT. 3 Quote Link to comment Share on other sites More sharing options...
Lee B Posted February 3, 2017 Report Share Posted February 3, 2017 I don't understand, why wouldn't you issue it. Quote Link to comment Share on other sites More sharing options...
rfassett Posted February 3, 2017 Report Share Posted February 3, 2017 I don't think a 1099-INT is necessary, but I would want some sort of communication between the two so their records match up. As the lender, I believe the seller should send the buyer some sort of statement showing the amount of interest expense the buyer paid to the seller during 2016 and the remaining balance on the note at 12/31/16. I do not believe the government needs to be involved in this. There is no requirement, to the best of my knowledge, that individuals must file 1099s. Quote Link to comment Share on other sites More sharing options...
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