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jsedigo
New Member

Do I need to file a 1099INT for interest payments made to Trust/Estate?

Our company pays a trust for a seller-financed property bought by our company. We used to pay Escrow Specialist for this and they provide us the 1098 MORT. Just last year, our boss decided to pay the trust directly to avoid the fees we pay to the third-party. 
 
Our company bought a property owned by the trust under a seller-financed loan. Do we need to file a 1099 INT for this?

Thanks!

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1 Reply
pk
Level 15
Level 15

Do I need to file a 1099INT for interest payments made to Trust/Estate?

@jsedigo  as I understand what the situation is :

(a) You  ( an entity ) bought a property  that  was owned by a trust.

(b) Trust is the lender of record  and therefore you pay the mortgage interest to this trust.

 

Therefore , to recognize  this interest expense , the trust ( the recipient of the interest income ) needs to issue you a 1099-INT .  For you it in an expense  while for the Trust it is an income.

 

Does this make sense ?

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