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Investors & landlords
no. it should not be added to the property income, it is portfolio income and as such gets entered on 1099-int. the IRS doesn't care when you report more income such as interest than what's on the tax forms you receive. this is quite common.
even a traditional schedule C, whose principal activity is not loaning money, that receives interest income on it business a/c's reports the interest on 1099-INT not on schedule C.
for example, when renting residential real estate you will not get 1099-MISC from the tenants. thus the rental income reported will exceed the rental income reported to the iRS.
March 16, 2022
5:01 PM