Owner Financing and 1098

[woody726]

I currently owner finance 4 properties (previous rental properties that were sold to the tenant).  Last year, I sold a rental property to the tenant, but to his LLC.  Do I provide him/his LLC with a 1098 like my other 4 properties?  If so, what do I use as the TIN/EIN number?

[MinhT1]

The instructions for Form 1098 say:

You don’t need to file Form 1098 for interest received from a corporation, partnership, trust, estate, association, or company (other than a sole proprietor) even if an individual is a co-borrower and all the trustees, beneficiaries, partners, members, or shareholders of the payer of record are individuals.

In your case, you only need to provide Form 1098 only if the financing is part of your business and the borrower is a single-member LLC (which is a disregarded entity for tax purposes),. In this case, you should issue the form in the name of his LLC and use the EIN of the LLC.