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erniebotte
New Member

Invested in promissory note and received first year interest in advance. So a 30,000 note cost me 27,000. where do I report the 3,000 difference. Did not receive 1099

 
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Anita01
New Member

Invested in promissory note and received first year interest in advance. So a 30,000 note cost me 27,000. where do I report the 3,000 difference. Did not receive 1099

You would indeed include the interest income as though you received a 1099-INT.  You can fill that out a 1099-INT for the interest even though you didn't receive one.  It doesn't matter as long as you claim the interest.  Remember when the note matures to add any interest claimed in that or any prior year as an addition to cost basis.

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Carl
Level 15

Invested in promissory note and received first year interest in advance. So a 30,000 note cost me 27,000. where do I report the 3,000 difference. Did not receive 1099

@TaxGuyBill I know this is reported in the Investment Income section under the Personal Income tab. But in that section would is be reported in the sub-section for Straddles & Contracts? Or in the section for Stocks, Mutual Funds, Bonds, Other?
erniebotte
New Member

Invested in promissory note and received first year interest in advance. So a 30,000 note cost me 27,000. where do I report the 3,000 difference. Did not receive 1099

would the 3,000 be included in interest income section same as if I were receiving interest during the year.  ANy issue since no 1099?
Anita01
New Member

Invested in promissory note and received first year interest in advance. So a 30,000 note cost me 27,000. where do I report the 3,000 difference. Did not receive 1099

You would indeed include the interest income as though you received a 1099-INT.  You can fill that out a 1099-INT for the interest even though you didn't receive one.  It doesn't matter as long as you claim the interest.  Remember when the note matures to add any interest claimed in that or any prior year as an addition to cost basis.

View solution in original post

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