1099-INT to individual?

2 Replies

Everyone keeps saying we need to send a 1099-INT to private money lenders we get loans from, but as I read the Instructions for 1099-INT, right at the end of the first page, it says in the paragraph Interest Excluded from Reporting, "You are not required to file Form 1099-INT for interest on an obligation issued by an individual, ..." I loaned personal money to my LLC (which used it to buy an investment home), and it is paying back with interest. I don't see that the LLC needs to issue me a 1099-INT. I do report the interest income on my personal taxes. Anybody out there know anything different?

@Art Wolfskill  talk to your CPA about this. I assume since you are paying the interest and claiming the interest on the same taxes, that the 1099 is not necessary, but a CPA would know best. 

Thanks. I'm sure my CPA would say to file it anyway, regardless of what the rules say. They're kinda risk-averse. BTW, my LLC is with others, not a single-member, so everything is separate and not just all on my personal forms.