Personal Mortgage Loans

Forum|Forum|2 years ago
January 25, 2024
8 replies
27 views

I loaned my son $200K to help him buy a house. The IRS has a minimum interest rate that needs to be used to pay the loan back. Is the interest he pays me taxable and do I need to file a 1098 form with the IRS?

Not A Product Question

Bsch4477

Level 15

The interest he pays you is taxable and is reported as if you received a 1099-INT.

tbpveAuthor

Level 2

Response didn't answer the question???

Bsch4477

Level 15

Assuming it was a personal loan and you don’t have a recorded lien on the home he can’t deduct the interest making that form unnecessary.

tbpveAuthor

Level 2

Does the mortgage interest deduction that my son is eligible to take, require me to send him Form 1098 as shown in Turbo Tax Help? I recognize that the lender (me) is required to submit a 1099-INT to the IRS, but am I also required to submit Form 1098?