The LLC, which pays the interest, would file Form 1099-INT showing the interest they paid.
The LLC most likely claimed the interest as an expense.
The IRS wants forms filed that alert them of INCOME they should see reported on a tax return. When the LLC files Form 1099-INT, that form is letting the IRS know that the "Property Investor" should be reporting that amount as income for the same tax year.
The Property Investor will claim the interest on Schedule B.
Unless the LLC is a Sole Proprietorship, the Property Investor needn't file Form 1098.
According to the IRS:
FORM 1099-INT "File Form 1099-INT, Interest Income, for each person:
To whom you paid amounts reportable in boxes 1, 3, or 8 of at least $10 (or at least $600 of interest paid in the course of your trade or business described in the instructions for Box 1. Interest Income , later);
For whom you withheld and paid any foreign tax on interest; or
From whom you withheld (and did not refund) any federal income tax under the backup withholding rules regardless of the amount of the payment."
FORM 1098 "You need not file Form 1098 for interest received from a corporation, partnership, trust, estate, association, or company (other than a sole proprietor) even if an individual is a co-borrower and all the trustees, beneficiaries, partners, members, or shareholders of the payer of record are individuals."
According to Investopedia:
"Interest income must be documented on Schedule B of IRS Form 1040."
@bluewaterbookkeeping66
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