1099 OID Implications on a note purchase?

[Keith Ghion]

Hi all - I searched the forums and haven't really seen a post addressing this specifically. I'm about to fund a note purchase via JV agreement. Funding will be provided via cash not SDIRA. I'm assuming that end of year tax reporting would be a 1099 INT for any interest payments and a 1099 MISC for profit on any sales. My CPA thinks there might be 1099 OID (Original Issue Discount) implications as well however. Just trying to get a handle on the tax implications there and if anyone can lend insight to any 1099 OID reporting? Thanks!

[Fred Moskowitz]

@Keith Ghion this is a very specific tax question, specific to your personal situation. I recommend that you speak with the CPA that will be handling the tax returns for the entity that you are funding as part of the JV, so that you and your CPA can do adequate tax planning. Remember that part of the due diligence that you should do before getting into any investment is to evaluate and fully understand the tax liability of the deal and how it will impact you as an investor.