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Level 2

Reporting mortgage interest

This year I sold a house.  It wasn't a rental actually, it was a house I bought for my daughter she got re-married and didn't need it.  I know I have to report the interest to the IRS as income but I also have to report the interest amount to the buyer since I am the mortgage holder.  Through a little research I am suppose to use form 1098.  There are many 1098's and am lost to which form to use.  Please help

                                                                                                                      Mark Johnston

9 Replies
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Level 14
Level 14

Reporting mortgage interest

Edited after original post:  Unless you are a lending institution, it's my understanding that you aren't required to issue a mortgage interest statement.  However, you ARE still required to report any interest income received.

 

You will need to use Form 1098 Mortgage Interest Statement if you've received more than $600 in mortgage interest.  I'm linking that form below.  The second link will open to the Instructions for the form.

 

https://www.irs.gov/pub/irs-prior/f1098--2019.pdf

 

https://www.irs.gov/pub/irs-prior/i1098--2019.pdf

 

 

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*** I am NOT a tax expert. I am a seasoned TurboTax user, and volunteer to provide assistance to TT users. Nothing I post is to be considered TAX ADVICE; I bear no legal liability for responses.***
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Level 2

Reporting mortgage interest

Thank you Kat!!  I looked on the IRS site and there are numerous 1098's.  I thought about just picking one filling  in the info. and bear the brunt of "you dummie" messages from the IRS.  But, I thought giving you a shot at my trivial problem would save me the wrath of the IRS, because they love to do it.  Thank you again Mark Johnston

Highlighted
Level 14
Level 14

Reporting mortgage interest

Hi Mark!  So happy to help, and thankful that I knew the answer!  Hope your Thanksgiving was wonderful!

*** I am NOT a tax expert. I am a seasoned TurboTax user, and volunteer to provide assistance to TT users. Nothing I post is to be considered TAX ADVICE; I bear no legal liability for responses.***
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Level 2

Reporting mortgage interest

Kat,  Earlier I ask for your advice and it was helpful.  I have another question dealing with the same topic-mortgage interest.  Bring you back up to speed with my problem.  I previously owned a house that my daughter lived in she recently got married therefore not my problem "anymore".  The house was not my primary residence, I sold the house financing myself.  You recently told me use form 1098.  I got the form and instructions.  My question- In the instructions for form 1098 of 2019 page 2 "Who must file" ,I am not in money lending business.  According to the 'not in the lending business' paragraph I don't have to file that I received interest.  Is that correct? 

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Level 15

Reporting mortgage interest

That is if you have to file the 1098 form.  You do have to report the interest you received on your tax return.  You enter it like you enter a 1099 Int you get from a bank.  Enter a fake 1099int and put the amount in box 1.

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Level 14
Level 14

Reporting mortgage interest

So Mark, as @VolvoGirl kindly pointed out, this does indicate that you aren't required to issue and file the 1098.  My bad...totally.  Please accept my apology.  

 

It IS mandatory, however, that you report the interest income.  The borrower that paid you "may" ask you for identifying info (SSN?) so that they can report the mortgage interest paid to you.

 

 

*** I am NOT a tax expert. I am a seasoned TurboTax user, and volunteer to provide assistance to TT users. Nothing I post is to be considered TAX ADVICE; I bear no legal liability for responses.***
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Returning Member

Reporting mortgage interest

But I'm a small time lender and I WANT to file 1098s.

 

Any helps?  electronic file?  All within TT Business?  tnx

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Level 15

Reporting mortgage interest

Sorry Turbo Tax personal and Business programs do not prepare 1098.  Only W2, 1099Misc, 1099Int and 1099Div.

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New Member

Reporting mortgage interest

I'm in a similar situation, I don't see an option in TT but I have found this page:

https://www.onlinefiletaxes.com/e-file-1098-form.htm

which is what I'll use for filing the 1098s.  And of course reporting the income (somewhere) in Turbotax as interest income.