topic How do I complete a 1098 Mortgage interest form for a private mortgage to my brother? in Deductions & credits

How do I complete a 1098 Mortgage interest form for a private mortgage to my brother?

klanderso — Mon, 03 Jun 2019 20:08:45 GMT

My mom's trust loaned my brother money for his mortgage. The mortgage started February 1, 2018. I'm looking at the Form 1098 for 2018 and it asks on #2 for the outstanding mortgage principal as of 1/1/2018. I'm assuming that would be "0" since the loan didn't start until February, right? So nowhere on this form does it have the original or current principal?

As I've been researching, I did just find a post from 3 years ago that indicates that I don't have to complete forms 1098 and 1099 since the mortgage was between relatives (deceased mom's bypass trust and my brother), is that still the case and do I not even have to bother with this? (Other than filling out the proper lines on our tax forms?)

Thanks

You are NOT required to issue a 1098 since you are not th...

Critter — Mon, 03 Jun 2019 20:08:47 GMT

You are NOT required to issue a 1098 since you are not the mortgage business ... so you just need to have an amortization chart and you both agree to how much interest was paid ... then you enter that amount as interest income on the Sch B and they can deduct it on the Sch A without a form ... you will both indicate the other party on the return.

OP has started a new thread about this same situation. If...

rjs — Mon, 03 Jun 2019 20:08:48 GMT

OP has started a new thread about this same situation. If there is a need for any further discussion, continue in the other thread. This thread is closed.

New question:
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4517187-my-mom-s-trust-loaned-my-brother-money-to-buy-a-house-but-the-house-is-in-his-llc-who-can-claim-the-interest-deduction-my-brother-or-his-llc">https://ttlc.intuit.com/questions/4517187-my-mom-s-trust-loaned-my-brother-money-to-buy-a-house-but-the-house-is-in-his-llc-who-can-claim-the-interest-deduction-my-brother-or-his-llc</a>

Re: You are NOT required to issue a 1098 since you are not th...

TroyEM — Wed, 24 Feb 2021 21:41:57 GMT

I have a similar question that you previously answered. I own a mortgage, but don't see where to enter the interest in the Turbo Tax interview questions. In the interest and dividend section, there is a place for "seller-financed" loans, but I technically didn't sell my home and want to make sure it doesn't get reported as such. Can you tell me where this should be entered in the interview section?

Re: You are NOT required to issue a 1098 since you are not th...

rjs — Thu, 25 Feb 2021 02:33:00 GMT

@TroyEM Enter the interest as if you got a 1099-INT. Enter the borrower's name in the box for "Received from" and enter the amount of interest in Box 1.

Re: You are NOT required to issue a 1098 since you are not th...

lnk-fr — Sat, 21 Jan 2023 12:57:36 GMT

How do I do this in Turbotax?

Re: You are NOT required to issue a 1098 since you are not th...

Cynthiad66 — Mon, 23 Jan 2023 14:35:22 GMT

@lnk-fr Please clarify your question. Please provide specifics to your situation so that we may better assist you. Exactly, how do you do what in TurboTax? Report interest expense or interest income for the trust. Is there a trust?