Is a 1099-PATR from a loan taxable income?

Forum|Forum|3 years ago
March 23, 2023
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JohnW152

Level 15

Form 1099-PATR isn't typically associated with a loan, but information reflected on it may be taxable income.

Please clarify what boxes are entered on the form, how the information is related to a loan, and any other relevant information.

According to About Form 1099-PATR, Taxable Distributions Received From Cooperatives:

Cooperatives file Form 1099-PATR for each person:

To whom the they paid at least $10 in patronage dividends and other distributions described in section 6044(b).
From whom they withheld any federal income tax under the backup withholding rules regardless of the amount of the payment.

r46tinocoAuthor

Level 2

I purchased land for personal use through a Farm credit bank, and they issue patronage based on the proportion of interest paid on the loan and total interest earned by the association. And only box 1 of the 1099-PART is filled out with the dollar amount, and I’m not sure if it is taxable income since it is from loan used to purchase land for personal use.

ThomasM125

Level 15

The instructions on Form 1099-PATR say that the amount in box 1 is not taxable if it is associated with property you bought for personal use. So, you don't need to enter the income on your tax return.