The Tax Benefits Of Real Estate Investing: Difference between revisions
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Revision as of 03:57, 8 October 2026
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Just like your employer is important to send a W-2 to you every year, a lender is required to send 1099 forms to all borrowers which debt forgiven. That said, just because lenders will need to send 1099s doesn't suggest that you personally automatically will get hit having a huge goverment tax bill. Why? In most cases, the borrower is really a corporate entity, and you are just an individual guarantor. I understand that some lenders only send 1099s to the borrower. Effect of the 1099 pertaining to your personal situation will vary depending precisely what kind of entity the borrower is (C-Corp, S-Corp, LLC, etc).
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