Private money lender tax Question

General Real Estate Investing
1

For 2006 I lent money out as a private money lender The question I have is what form do I need to give to the owner of the note I was holding?

I recieved a letter today from the owner and he is requesting from me the interest related tax info.

I believe I need to give him a 1099 showing what he has paid any assistance would be appreciated

2

I think it’s 1098 that you are thinking of.

3

If you are the lender, then you should be the owner of the note . If the loan is secured by real estate, then issue Form 1098.

An alternative approach is to give the borrower a letter with all the details such as your company EIN (your SSN if you made the loan personally) and total interest paid throughout the year. A nice to include would be the remaining balance on the note.

4

Thanks Dave and jharris

Appreiate the help

Doing my research that is what I came up with giving the person who paid me a 1098 for the interest he paid me.