Is a gift card of $25.00 given to a customer closing a mortgage loan considered interest under IRS rules - so a 1099 would be need to be filed??

It wouldn't be considered interest and a 1099-MISC filing would not be necessary since it's under the reporting threshold ($600).

Happy New Year to Everyone!! I have a question regarding gifts given to customers that open an account. We had a promotion and gave gifts to customers based on the amount of the deposit.

what is the threshold for that type of reporting and do we report a 1099- MISC?

§1030.2(f): Bonus means a premium, gift, award, or other consideration worth more than $10 (whether in the form of cash, credit, merchandise, or any equivalent) given or offered to a consumer during a year in exchange for opening, maintaining, renewing, or increasing an account balance. The term does not include interest, other consideration worth $10 or less given during a year, the waiver or reduction of a fee, or the absorption of expenses.

Report on Form 1099-INT if the de minimis value was over $10.

what is the threshold for that type of reporting and do we report a 1099- MISC?


Page 113:

http://www.irs.gov/pub/irs-irbs/irb00-28.pdf

It's a mistake to use Regulation DD or the FDIC definition of interest or anything else other than IRS regulations for answers about IRS requirements, even if there is some historic nexus between them.