How do I report interest and P&L from notes on 1120?
Hello Everyone,
Could anyone please help me understand how mortgage notes are accounted and reported for the purpose of business tax return (form 1120) ? While searching the Net, I found a few different approaches - from treating them as "stocks" to OIDs to crazy complex deemed exchange schemes and pretty much everything in between.
My question is to those who have done it themselves: how did you do it? I am specifically interested in figuring the business tax return part. Any help is greatly appreciated!
Cheers
Alex