How do I issue a 1098 for a private loan/mortgage I made to a family member?

[yoshl]

Wouldn't the family member need a 1098 to be able to deduct interest on the mortgage? How do I issue a 1098 for a private loan/mortgage I made to a family member?

[Critter-3]

You do NOT issue a 1098 form since you are not in the business of lending money.   To enter the interest you earn  on your tax return you will need the payer's name, address & SS# to put on your Sch B.   Then for the payer to deduct the interest without a 1098 they will need your name, address & SS# to put on their Sch A.  This is the way the IRS cross references this situation.  

[yoshl]

I had put it in as 1099-int. How do I access Sched B? I searched for it on Turbotax but it won't take me to any forms. 

@Critter-3 

[VolvoGirl]

It filled out Schedule B when  you entered the 1099 INT for interest.   You only get Schedule B printed if either interest or dividends is over 1,500.  

Before filing,  You can preview the 1040 or print the whole return

https://ttlc.intuit.com/community/accessing/help/how-do-i-preview-my-turbotax-online-return-before-f...

[yoshl]

@VolvoGirl Turbotax doesn't have a field to enter the mortgage payer's SSN number when adding the 1099-int so there's no way the IRS can cross reference as @Critter-3 suggested. 

[VolvoGirl]

Then you need to enter the 1099INT a couple lines down under Interest from Seller Financed Loans.   Delete it from Interest line.  

[yoshl]

@VolvoGirl Am I supposed to enter my personal address on this, or the address of the property mortgaged? Thank you. 

[Critter-3]

@yoshl 

Go back and look again... you have to pick the correct section  so the interest would be entered on a Sch B even if a Sch B is not required.  Remember to delete it from the 1099-INT section.  

[yoshl]

Yes, I found that section and trying to fill it out properly.

Am I supposed to enter the personal address of the buyer of property who took out the loan from me, or is it the address of the property that was sold and mortgaged? Thank you. @Critter-3 @VolvoGirl 

[Critter-3]

You enter the buyer's name, their mailing  address and their SS#.   

[rjs]

If you sold the property to the family member, enter your interest income as "Interest from Seller-Financed Loans." In TurboTax this is a separate topic from "Interest on 1099-INT." The address that you enter is the payer's current mailing address.

If you are not the seller, do not enter the interest income as interest from a seller-financed loan. Enter it as if you got a 1099-INT, even though you didn't get one. Enter the name of the family member as the payer, and enter the amount of interest you received. It is not necessary to enter any other information about the payer.

In either case, you do not issue a Form 1098.

[Critter-3]

They changed the TT program ... you can no longer enter interest without the EIN from the issuer so this person must use the seller financed section even if he did not sell the underlying property (since it really doesn't matter)

@rjs @VolvoGirl 

BTW ... where/how can you enter the IRS interest amount now since the IRS has no EIN ???

[rjs]

@Critter-3 

When I enter a 1099-INT it does not require an EIN. All I have to enter is the payer's name and the amount of interest. There is no place on Schedule B for the payer's EIN, so there would be no point in requiring it.

I believe that some states might require the EIN for the state tax return.

[VolvoGirl]

@Critter-3   I hadn't heard you now need an EIN.  Just checked my Desktop program it does not even ask or have a box for EIN for interest.  

[Critter-3]

In the online program you cannot skip the EIN requirement ... that entire INT section flow is different and not for the better.