1099-INT Forms for 2006 Explained by USACM
Investors have been inquiring about reconciling their 1099-INT forms with the documents they have received from USACM since the bankruptcy filing. Before you call or send an inquiry to USACM, please check these items to see if they answer your questions.
- The interest payments you received in calendar year 2006 used to calculate the 1099-INT amounts can be found in your Investor History reports in Column J (“Interest paid to Investor”). Look for those amounts in your September, October, November and December 2006 Investor History reports. Add up the amounts you received in calendar year 2006.
- The 2006 1099-INT forms DO NOT include amounts NOT PAID due to netting. The interest not paid to you because it was held back due to netting can be found by looking at your Check Statement for December 1-31, 2006 in the column “Prior Period Interest Due to (from) Investor.” It will be the positive numbers in that column.
- The 2006 1099-INT forms DO include amounts paid on loans that paid off in 2006 prior to the bankruptcy filing. These loans could have had interest payments made prior to April 2006. Please check your January through March statements to see if you have interest that falls into this category.
- The interest reported on the 1099-INT form is the interest paid prior to any holdbacks for Loan Servicing Fees. These holdbacks may represent investor expenses for the 2006 tax year. Please consult your tax advisor.
Prior year 1099-INT forms
Prior year 1099-INT forms will not be revised for pre-paid interest paid before 2006. In the year that the netting is actually applied (rather than heldback), which is scheduled to be in February 2007, the amounts paid by the performing loan(s) will be offset by the amounts owing on the non-performing loan(s). The performing loan interest thus offset will not be included on the 2007 1099-INT forms.
Amended 1099-INT forms for 2005 are being issued for investors who held an interest in the Beau Rivage loan because payments made after the payoff of the loan are determined to be principal repayments, not interest payments.
Copyright © 2006 USA Commercial Mortgage Company
USA Capital - Las Vegas · 4484 South Pecos Road · Las Vegas, NV 89121
NV MBR 333 · Phone 702.734.2400 · Fax 702.734.0163
NV MBR 333 · Phone 702.734.2400 · Fax 702.734.0163