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BizGuy
New Member

I sold some land in 2005 and carried back a note. It is now March of 2017, the buyer is being audited by the IRS for 2014 taxes and wants me to provide a 1098.

I’ve never provided a 1098 and according to the IRS instructions for 1098’s on irs.gov, I don’t need to provide a 1098 since lending money is not my principle business (I do computer work).

I want to help out the buyer of my land what should I do?

Do I need to provide my social security number on the documents you may suggest?

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Accepted Solutions
MargaretL
Employee Tax Expert

I sold some land in 2005 and carried back a note. It is now March of 2017, the buyer is being audited by the IRS for 2014 taxes and wants me to provide a 1098.

You are correct that you are not required to issue a 1098 form to the borrower if you are not in business of lending. Write a private letter listing amount of interest that the borrower paid you on the loan for 2014.  As to the social security number - yes, you should include the SSN number on the letter. In fact, the borrower should have had your SSN number so that he could property report the interest that he paid on a seller financed loan. 

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1 Reply
MargaretL
Employee Tax Expert

I sold some land in 2005 and carried back a note. It is now March of 2017, the buyer is being audited by the IRS for 2014 taxes and wants me to provide a 1098.

You are correct that you are not required to issue a 1098 form to the borrower if you are not in business of lending. Write a private letter listing amount of interest that the borrower paid you on the loan for 2014.  As to the social security number - yes, you should include the SSN number on the letter. In fact, the borrower should have had your SSN number so that he could property report the interest that he paid on a seller financed loan. 

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