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New Member
posted Jun 1, 2019 9:33:52 AM

Should I report patronage dividends reported on form 1099-PATR as income?

I purchased a second home using a mortgage obtained through a land bank.  I am taking a tax deduction on the interest paid on this mortgage.  I also received a patronage dividend from the land bank that was reported on from 1099-PATR.  Should I report this patronage dividend as income?  Should I reduce the interest deduction by the amount of the patronage dividend?

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3 Replies
Expert Alumni
Jun 1, 2019 9:33:55 AM

You should not reduce the amount of interest deduction by the amount of the patronage dividend.

This is how to report form 1099-PATR on your tax return:

https://ttlc.intuit.com/replies/5113710

New Member
Jun 1, 2019 9:34:00 AM

The tip implies that I shouldn't report the patronage dividend, because it is associated with property purchased for personal use.  Do you agree?

Expert Alumni
Jun 1, 2019 9:34:03 AM

If you itemize your deductions and get a tax benefit then you must report the 1099-PATR. Otherwise, you do not have to report it.