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Investors & landlords
@heybrian wrote:I earned nearly 30% on a cash loan to a real estate developer. What 1099 should he provide when my cash principal and gains are returned to me?
You really should contact the developer and inquire to be absolutely certain, but if the transaction was actually structured as true debt (i.e., a loan with a specific interest rate), then what you received was interest, not capital gain.
In that respect, you should be aware of the substance of the transaction and your participation in it, so you need to specify exactly how the deal was structured.
‎July 12, 2019
4:18 PM