Private loan mortgage

[kenyonlc]

I paid mortgage interest to a private individual.  The title is in my name. There is no 1098.  How do I enter the information for this individual and the mortgage interest paid.

[MargaretL]

Please enter the interest as usual, just indicate that you do not have form 1098... IF the loan meets the requirements of a secured debt (explained below):

1. Federal Taxes
2. Deductions and Credits
3. Your Home
4. Mortgage Interest and Refinancing, enter the Lender's name and indicate that you did not receive 1098 form, 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.