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Updated over 1 year ago on . Most recent reply

Michael Myers's profile image
Michael Myers's profile image
Michael Myers
  • Investor
  • from Pleasant Hill, CA
  • Member since Aug 8, 2019
  • Posts 58
  • Votes 21
  • Experience 5 Yrs
  • Investments 2

User Stats

58
Posts
21
Votes
Michael Myers's profile image
Michael Myers's profile image
Michael Myers
  • Investor
  • from Pleasant Hill, CA
  • Member since Aug 8, 2019
  • Posts 58
  • Votes 21
  • Experience 5 Yrs
  • Investments 2
Michael Myers
  • Investor
  • Pleasant Hill, CA
21
Votes |
58
Posts
Private Lending & Conventional Mortgage Advice

Buy Note at a Discount

Michael Myers
  • Investor
  • Pleasant Hill, CA
Posted

When buying a note at a discount (e.g. $100k performing I/O note for $90k), how do you classify the extra principal you get back when the loan matures? It can't show up on the 1098/1099 since it wasn't charged to the borrower… so what do you classify it as? Just regular business income? Capital gains of some sort?

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