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posted Jun 6, 2019 1:55:08 AM

I bought property/took out loan from the original land owner, would like to write off the interest. Where can i do this? I do not have his SS# or FIM#

I currently have this loan under mortgage/but cant seem to get back to that point

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1 Best answer
Expert Alumni
Jun 6, 2019 1:55:10 AM

You will have to print and mail your tax return; and attach explanation as to why you cannot provide the Lender's number; it is required...

As to the data entry:

IF the loan meets the requirements of a secured debt (explained below) - you will report the interest as a regular mortgage interest paid:

  1. Federal Taxes
  2. Deductions and Credits
  3. Mortgage Interest and Refinancing, enter the Lender's name and indicate that you did not receive a 1098, enter the interest amount.

Home mortgage interest is deductible only if the mortgage is secured debt. Secured debt is represented by a signed instrument (such as a mortgage, a deed of trust or land contract) that:

  • Makes the borrower’s ownership in a qualified home security for payment of the debt,
  • Provides, in case of default, that the home could satisfy the debt, and
  • Is recorded or is otherwise perfected under any applicable state or local law.

IF the loan does not meet the above requirements, the interest paid would be considered personal and therefore not tax deductible.

1 Replies
Expert Alumni
Jun 6, 2019 1:55:10 AM

You will have to print and mail your tax return; and attach explanation as to why you cannot provide the Lender's number; it is required...

As to the data entry:

IF the loan meets the requirements of a secured debt (explained below) - you will report the interest as a regular mortgage interest paid:

  1. Federal Taxes
  2. Deductions and Credits
  3. Mortgage Interest and Refinancing, enter the Lender's name and indicate that you did not receive a 1098, enter the interest amount.

Home mortgage interest is deductible only if the mortgage is secured debt. Secured debt is represented by a signed instrument (such as a mortgage, a deed of trust or land contract) that:

  • Makes the borrower’s ownership in a qualified home security for payment of the debt,
  • Provides, in case of default, that the home could satisfy the debt, and
  • Is recorded or is otherwise perfected under any applicable state or local law.

IF the loan does not meet the above requirements, the interest paid would be considered personal and therefore not tax deductible.