I own a real estate property in my name. I hold a mortgage on the property to the buyer. Must I file a form 1098 reporting interest the buyer paid to me?

[chriscullen33]

The annual interest paid is over the Federal limit of $600. I am not in the business of RE investing.

[Critter-3]

NO ...  you do not issue a 1098 form  however you need the buyer's name, SS# & address for your Sch B and they need your name, SS# & address for their Sch A.  By law you must both provide each other with this information.  

[VolvoGirl]

And you enter it on your return like interest on a 1099 INT

Federal Taxes Tab
Wages & Income
Interest and Dividends
Interest from Seller Financed Loans

[Carl]

No, you don't have to issue a 1098-Mortgage Interest Statement. But you should send the buyer a "letter is lieu" of the actual form, as the buyer will need that information for their own tax return. Your letter should include.

- Original amount of the loan

- Date the loan was established (the closing date or origination date of the loan)

- Outstanding balance of the loan on Jan 1, 2020

- Total Interest paid in 2020.

- Address or description of the property that is securing the mortgage between you and the buyer.

Again, the buyer will need this information for their own tax return.