Borrowing money from members

by Karen

Last year, multiple members of the church loaned money for the purpose of buying the property next door.

We have been making payments back to those members, however, the person that previously handled the bookkeeping did not record the purchase of the property in QuickBooks.

It looks like money coming in & going out was recorded through an equity account.

I now have one of those members asking me for a 1099 for the money paid to them for the loan.

I am new at this and do not know how to handle.

Also, we are making "mortgage payments" to the church that originally owned the property.
1. Are we suppose to send 1099's to the members that we are making the payments to?
2. If so, how is this recorded on the 1099?
3. How should I record the purchase of the property, the receipt of loans, etc.

Comments for Borrowing money from members

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interest payments
by: Anonymous

If large sums of money is borrowed from a member with the intent to pay back with interest. And the interest is paid first. How do I record this in quickbooks and issue them a 1099-INT. Need to know how to record the information on the 1099-INT

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