Land Trusts Deductible Interest vs. IRS Records - Posted by Z

Real Estate Investing
1

Posted by Jim FL on March 11, 2002 at 24:21:29:

Z,
Disclaimer: I am not a tax expert, attorney or CPA.

With that said, sure, the 1099 will have the original barrowers name on it, no big deal.
When you do your taxes, take a look at the forms, or the software you use to prepare it.
You will be asked if the 1099 has your name on it or not, just answer “No”.
The form should them ask who’s name is on it, and you just fill that in.
Since you made the payments, you get the tax benefits, regardless of who the 1099 has on it.

Search the archives here, there are some great posts on the subject, as well as some on legalwiz.com as I recall.

HTH,
Jim FL

P.S. If you want a more “Qualified answer” try to post this ? on the lagal forum here, surely John and Bill can answer you in more detail.

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Land Trusts Deductible Interest vs. IRS Records - Posted by Z

Posted by Z on March 10, 2002 at 17:17:10:

Has anyone with Land Trust experience had any difficulty with the IRS. Specifically, the lender will send a 1099 to the borrower and the IRS. However, the borrower is not the Beneficiary, but I am or my company is. I wish to take interest deductions from the monthly payments I’ve made on the property, but the 1099 has the name of the borrower whom I bought the property from. Do I attach the 1099(with the borrower’s name on ite) with my 1040? Will this send up a red flag with the IRS since I’m claiming interest deductions from a 1099 sent to another tax payer? Suggestions or thoughts please.

Thanks - Z