Intra Family Mortgage

[20Ebenezer08]

My husband and I (retired) financed (or refinanced ) a home already owned by my daughter and her husband Jan 1, 2023.   They have paid us interest for 2023 over $5000.    My question is:  Do they need to send us a 1099-int?  If not, do they need to send us any form?  I know the interest will have to be reported on our 1040.

If someone can give an accurate but simple answer, I would appreciate it.  Thank you in advance.

[Bsch4477]

File Form 1099-INT for each person:

• To whom you paid amounts reportable in boxes 1, 3, and 8 of at least $10.
• For whom you withheld and paid any foreign tax on interest.
  
  
• Note that assuming this was a person loan with no recorded lien against the home, the interest is not deductible as mortgage interest by the payor. 

[MinhT1]

As your daughter and son-in-law didn't pay you interest in the course of their business (they aren't a financial institution), they aren't required to issue you Form 1099-INT. 

You aren't required to send them Form 1098 either, but if eligible, they can still claim mortgage interest.