1099-PATR

[SensibleandHourly]

Good afternoon, 

Double-checking with the super smart tax crowd that 1099-PATR patronage dividends from Greenstone that my client recv'd as he has a loan with them are not taxable? 

Fifteen more days, 

Dawn

[sjrcpa]

Is he deducting the interest he pays them?

[dkh]

A few years ago everyone that had a mortgage with Farm Credit Mid America received a 1099-PATR.  At that time, I researched whether it was taxable.  The information I found was it was not taxable if it was paid based on a home mortgage and not an income producing property  (ie poultry farm). 

I will see if I can find my documentation that backed up that conclusion.  Can't put my fingers on it at this moment.

[SensibleandHourly]

I'm not sure yet if he has enough to itemize. The dividends are for his personal residence, but he also sold a home that he hadn't lived in for two years, and I was curious if those closing costs were any sort of write-off since he is going to have significant capital gain. He's not a real estate agent, was just in the right place/right time to make 100k off of what he originally hoped would be a rental. 

[SensibleandHourly]

Thank you, DKH, that is what I seemed to be finding but nothing was as definitive as I would have liked it to have been. And it is a 1099! 

[dkh]

I did an entry on Schedule 1 - other income line 8    with this verbiage......

FORM 1099-PATR BOX 1 $xxxx.xx - NOT TAXABLE

and I entered zero on line 8