I would think that since the partnership is paying the interest, which would be an expense, that the partnership would issue an 1099-INT to the individual. It would not appear on the K-1, as that would be interest income earned by the partnership.
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Neil Fishman CPA
FISHMAN ASSOCIATES CPAs PA
Boynton Beach FL
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Original Message:
Sent: 08-17-2015 17:12
From: Robert Brown
Subject: How to report interest received on capital (1065)
Mark:
Assuming it is the partnership paying the interest, it would go on the K-1, and the interest would only be allocated to that partner.
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Robert Brown
ROBERT N. BROWN, CPA
Jericho NY
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Original Message:
Sent: 08-14-2015 16:18
From: Mark Nieuchowicz
Subject: How to report interest received on capital (1065)
Hi All,
I have a Parnership with 3 partners. One partner contributed 100% of the capital ($400,000) and will earn 5% interest (from the partnership) on her contribution along with 25% of profits.
I am not sure how to report this interest income on the K-1 with out effecting the other partners. Does this go on the K-1, if so as a guaranteed payment or interest income? Or should I issue a 1099-Int just to the partner earning the interest.
Thank You
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Mark Nieuchowicz
CPA
NIEUCHOWICZ, CPA PC
Valley Stream NY
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