Members of the Maryland Association of Certified Public...

Tax questions

February 13, 1997

Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15.

Q. I have direct deposit on some stock dividends. Will the company still send me a Form 1099? Will the interest on the account be reported separately?

A. The direct deposit of a dividend to your checking or savings account does not relieve the corporation paying the dividend of the requirement to issue a Form 1099. Accordingly, the corporation will issue you a Form 1099 for all dividends it deposited during the calendar year. Any interest you earn on the money will be reported to you by the bank on the Form 1099 issued for your checking or savings account.

Q. I am the primary signer of a loan on my daughter's car, which she owns in her own name. Can she claim the interest?

A. No, personal interest is never deductible. Interest on auto loans is considered personal interest.

The above advice is for general purposes only and is not intended as legal, accounting or tax advice. Specific situations may vary.

To ask a tax question, call Sundial at (410) 783-1800. Call 268-7736 in Anne Arundel County, 836-5028 in Harford County and 848-0338 in Carroll County. Using a Touch-Tone phone, punch in the four-digit code 6225 after you hear the greeting.

Readers also can e-mail questions through The Sun's Web site -- www.sunspot.net. Visitors to the Web site will be able to access an archive of the questions and answers as well as other useful tax information and links.

Selected questions will be answered in the Business section. No questions will be answered by phone.

Pub Date: 2/13/97

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