Is the loan secured by the home you purchased or is this a personal loan from family members?
See https://www.irs.gov/instructions/i1040sca#en_US_2022_publink53061xd0e888
You should seek guidance from a legal/tax professional to ensure the loan is structured properly.
@suzanpourat wrote:
This is a personal family loan.
Interest paid on a personal loan is not deductible on a tax return.
@suzanpourat wrote:
This is a personal family loan.
@DoninGA is correct and the interest on the loan would not be deductible in any event unless it was secured by the house you purchased.
It was a loan to purchase the house and secured by the house that we purchased. It is a 9 years interest-only loan. Since I got the loan from an individual (family member), do I still need a 1098 form from him? If he doesn't provide the 1098 form, how can I deduct the interest that I paid on my tax returns?
From 1098 is issued by those who receive $600 or more in the course of their trade or business. In this instance, reporting on Form 1098 would not be required (although the form could still be filed as a record of payment).
Regardless, you should have some sort of documentation that reflects the fact that you paid interest on a loan secured by a house that you bought with the proceeds of that loan.