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19trees
New Member

Where do I report an inherited mortgage loan (I am the "bank") for which I filed a 1096 and issued a 1098? I will be receiving interest income for several more years.

 
4 Replies
KrisD
Intuit Alumni

Where do I report an inherited mortgage loan (I am the "bank") for which I filed a 1096 and issued a 1098? I will be receiving interest income for several more years.

Is it a mortgage loan or a land contract?
TomYoung
Level 13

Where do I report an inherited mortgage loan (I am the "bank") for which I filed a 1096 and issued a 1098? I will be receiving interest income for several more years.

If you're the lender you simply report it "as if' you'd received a 1099-INT.  As you say you inherited the asset I assume you're not really "in the business" of lending money.  ("Mortgage loan or land contract" is irrelevant; the borrower reports the interest deduction, you report the interest income.)

Tom Young

KrisD
Intuit Alumni

Where do I report an inherited mortgage loan (I am the "bank") for which I filed a 1096 and issued a 1098? I will be receiving interest income for several more years.

It it's a land contract, didn't he inherited the deed?
TomYoung
Level 13

Where do I report an inherited mortgage loan (I am the "bank") for which I filed a 1096 and issued a 1098? I will be receiving interest income for several more years.

A land contract means that title won't pass legally until the loan is paid off.  But the IRS is clear that the reporting of mortgage interest and expense is still done "as if" title had passed.
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