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.

 

 

 

 

 

  

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