Rec'd principal on a loan back but it was reported as Nonemployee comp. Is that right? Killing me in taxes

I loaned my brother's comp. 60K to purchase real estate. I rec'd dividend cks each quarter. he just retr'd the original 60K to me and reported it as Nonemployee comp. Is that correct? Leaves me with a staggering tax bill

posted

Connect with an expert

1 Best answer

Accepted Solutions

Rec'd principal on a loan back but it was reported as Nonemployee comp. Is that right? Killing me in taxes

It's not correct. He needs to file a corrected 1099-MISC showing a revised amount of zero.

View solution in original post

1 Reply

Rec'd principal on a loan back but it was reported as Nonemployee comp. Is that right? Killing me in taxes

It's not correct. He needs to file a corrected 1099-MISC showing a revised amount of zero.

Still have questions?