Thank you, Carl for your prompt and detailed answer. However, my understanding is that a 1099 is basically a notification to IRS of amounts distributed from an established business having a Tax ID to individuals, etc. As it is minus from THEIR books, it has to be added on the recipient's end. In this case, as an Investor, I should be reporting this SOMEWHERE on my tax return. In the first year, I was in a hurry and reported it on Sch C. This year I was researching this and clearly it doesn't belong on schedule C because I am basically a passive investor. Given this was a real estate project, I was hoping it would be reflected / treated as "capital gains" as opposed to "ordinary income".
