Interest Earned on Loan and reporting

[sanjay92]

I have loaned money and earn interest. So my question is what Form, I need to send to Borrower, IRS and my Tax filing purpose.

Do I need to send 1098 form to Borrower ?

and

I need to report my income in Sch B ?

Is there anything else from reporting side and what about any expenses which I have paid towards it , can I deduct those expenses ?

[RayW7]

Yes, you need to send Form 1098, Mortgage Interest Statement, to report interest of $600 or more you received during the year in the course of your trade or business from an individual, including a sole proprietor. 

You would report the interest received from the individual financed.  The interest is considered income and it is necessary to report this income annually on the lender's taxes, as is required with any other annual income.  The interest income will be reported on Schedule B on your return.

I am not sure what expense you would incur. Can you be more specific regarding expenses?

[sanjay92]

Is Schedule B form is same as 1099-INT in TurboTax ? Just to confirm that I need to put earned interest income under 1099-INT in Turbo Tax ? Can you please confirm ?

[CatinaT1]

The Schedule B reports an itemized list of your interest and dividend statements if you have over $1500 of total interest or dividends.  Yes, interest is reported on a 1099-INT.

[tmartinbell]

Interest is reported on Schedule B and 1040 line 2a and/or 2b.