BiggerPockets

I have a number of private loans to me. I am paying interest on these loans, but since they are private individuals they wont be submitting 1099INTs to me.

How do others deal with this?

It doesn't matter if it's a private loan, you should still get one. If they refuse to send you one, fill them out yourself and send mail them. I don't know the proper channels to use when someone doesn't give you all of your tax documents. Calling the IRS would probably be the first step.

I would just have your tax professional send them out. If you actually do your own taxes yourself which I highly recommend not too if your in this business and not a tax professional. You will have to go to library and find one you can send to partners. You want to send them out so they dont come back complaining to you about it later. Interest , its an expense and you want to document it in your business properly and communicate it with partners, investors, lenders so they are willing to do business with you.

You should be receiving a 1098 for the interest paid. If it is not secured by property you should be issuing a 1099-INT for interest paid to that person or business.

1099-INT is issued to the person who received the interest.

1098 is issued to the person who paid interest.

You should have an amortization schedule that you should be able to use.

My clients call me with questions like this all of time.

-Steven

@Rob K 1099 int is used to report interest received on checking and savings accounts. Since yours is secured by RE you don't need one.

Sorry, meant 1098 but I can't go back and edit now.

They are not refusing to send them to me, but since they are private individuals I want to make the process as easy and painless for them as possible.

What can I do, so that they have to do the least?

This is from the 2013 version; however:

Box 1. Shows taxable interest paid to you during the calendar year by the payer. This does not include interest shown in box 3. May also show the total amount of the credits from clean renewable energy bonds, qualified forestry conservation bonds, new clean renewable energy bonds, qualified energy conservation bonds, qualified zone academy bonds, qualified school construction bonds, and build America bonds that must be included in your interest income. These amounts were treated as paid to you during 2013 on the credit allowance dates (March 15, June 15, September 15, and December 15). For more information, see Form 8912, Credit to Holders of Tax Credit Bonds.

Bottom line if you paid interest they should be receiving one. Now, being that they are issuing a 1098 that is enough reporting in that the IRS knows they received interest income.

If you receive a 1098, you should be fine; however, I don't mind issuing 1098/1099s for everything.

-Steven