We sold land in 2022 and owner financed for the buyer. I am trying to determine if I have to file a 1098 to the IRS and to the buyer. This was not part of a business and not sold to a business (not sure if any of that matters). I understand that I do have to report the interest on my taxes but for now, I just need to know if I have to provide a 1098 to the buyer and the IRS.
I have been unable to find anything specifically related to this. While chatting with a Live TurboTax Advisor, they did send me some documentation on reporting the Loan interest but I was unable to find anything there that covered my particular question. In fact, one of the first paragraphs in the documentation said this (note the bold print line):
Lenders do not have to provide a Form 1098 if they received less than $600 in interest, mortgage insurance premiums, or points during the year. Additionally, interest received from a corporation, partnership, trust, estate, association, or company (other than a sole proprietor) does not require filing a Form 1098. If you bought a property with owner financing, the seller might not file a Form 1098. Regardless of why you may not have received a Form 1098, you typically can still deduct qualifying mortgage interest.
The interest paid for 2022 did exceed the $600 amount but the bold print line confuses me. Even though, this paragraph is directed to the Buyer, I am trying to understand under what circumstance would the Seller not need to file a Form 1098. Any direction that someone may already have to answer this would be appreciated.
Thanks
TomS
