The Tax Benefits Of Real Estate Investing: Difference between revisions
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Revision as of 21:12, 21 September 2026
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Just like your employer is to send a W-2 to you every year, a lender is vital to send 1099 forms to all borrowers in which have debt pardoned. That said, just because lenders are anticipated to send 1099s does not that you personally automatically will get hit by using a huge government tax bill. Why? In most cases, the borrower is a corporate entity, and you just an individual guarantor. I realize that some lenders only send 1099s to the borrower. Effect of the 1099 relating to your personal situation will vary depending exactly what kind of entity the borrower is (C-Corp, S-Corp, LLC, etc).
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