wjm@whuxj.UUCP (MITCHELL) (05/17/84)
<munch, munch, munch> The IRS doesn't require people who you pay interest TO to report it to them. If you don't want to take the tax break for deducting the interest you paid to banks, finance companies, etc. that's your privilege. In fact, you may not want to, since it may be to your advantage to take the standard deduction. As for the state of New Jersey, they couldn't care less since you can't deduct interest paid from NJ state income tax. Of course the IRS is VERY interested (pun intentional) in interest paid to you, since you have to report that as taxable income (with a few exceptions - notably municipal bonds). Bill Mitchell Bell Communications Research, Inc. (whuxj!wjm)
rkp@drutx.UUCP (Pierce) (05/17/84)
>The IRS doesn't require people who you pay interest TO to report it to them. >If you don't want to take the tax break for deducting the interest you paid >to banks, finance companies, etc. that's your privilege. In fact, you may >not want to, since it may be to your advantage to take the standard deduction. >As for the state of New Jersey, they couldn't care less since you can't deduct >interest paid from NJ state income tax. >Of course the IRS is VERY interested (pun intentional) in interest paid to you, >since you have to report that as taxable income (with a few exceptions - notably >municipal bonds). >Bill Mitchell >Bell Communications Research, Inc. >(whuxj!wjm) I know that the government doesn't always work with logic, but it seems really illogical that lending institutions NO NOT have to report interest that an individual paid to that institution. If you had a large amount of interest to deduct and only a small amount of interest earned to add to your income, what would you (the IRS) be more interested (pun intended, also) in. It seems logical to be more interested in the amount of deductions if they are large. Russ Pierce drutx!rkp P.S. Please correct me if I am wrong (I'm sure you will).
abc@brl-tgr.ARPA (Brint Cooper ) (05/18/84)
Interest you PAY on borrowed money is NOT reported by the lender to IRS. You, of course, should keep your receipts for this interest. That's your proof in case there's an audit!
andrew@inmet.UUCP (05/20/84)
#R:drutx:-34300:inmet:22100010:000:247
inmet!andrew May 18 22:58:00 1984
There has been some talk of requiring lending institutions to report interest
paid *TO* them - to discourage people from deducting more interest than they
actually paid.
Andrew W. Rogers, Intermetrics ...{harpo|ihnp4|ima|esquire}!inmet!andrew