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.
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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
Level 4

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?
Level 12

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

Level 4

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?
Level 12

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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