Seller financed business loan

I purchased a business that was seller financed. What forms, if any, do I need the send the Seller?

posted

A few additional facts would be good:

What is the entity structure
Did you purchase the assets or was this a stock deal

*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.

My response applies pending any additional details you may provide that may change things.

The buyer generally is not required to send the seller anything. It is the seller that is required to send the buyer something akin to a 1098 Mortgage Interest Statement or letter in lieu of, that shows the status of the loan to include the outstanding balance at the beginning and end of the tax year, as well as the total interest paid on the loan during the tax year.