- quote -

IIRC, you're *not required* to give the borrower a Form 1098
(and you don't have to send a copy to IRS) if you are *not*
in the business of making loans. Also, IIRC, if you
*didn't* sell the house to your borrower, he might *not* be
required to show your name, SSN, and address on his Schedule
A. The former conclusion can be found in the 1098/1096
instructions, and the latter one is in the Schedule A
instructins.

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iras1[at]aol.com (IraS1) writes:

- quote -

I think you got this a little twisted. Interest reported on
the 1098 is entered on line 10 of the Schedule A without
additional information. Interest paid to the seller but not
shown on a 1098 is shown on line 11 with the payee
information. However, since OP noted that he was not the
seller, it seems to me that the only thing showing on
Schedule A would be a monetary entry on line 11.

Phil Marti
Topeka, KS

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Harris wrote:

- quote -

Schedule B, or (possibly) line 8 if the interest is less
than $1500. (I say "possibly", because I don't recall if
you have to report mortgage interest on schedule B even
if less than the dollar amount.)

I decline comment on the information return filings at
this time.

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Harris wrote:

- quote -

You may like Line 21 for its simplicity but the IRS likes
Line 8a Taxable Interest to be used. Use 1040 Schedule B if
total interest is over $1500 before posting the result to
Line 8a.

--
Alan
http://taxtopics.net

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Harris wrote:

- quote -

Nope.

First of all, you report said mortgage interest income on
the second line of 1040, and if necessary, schedule B (if
total is over 1500$)

Secondly, you do not issue a 1098 to the payor, UNLESS you
are in the business of making loans, which you indicate you
are not.

Is that simple, or what?

cheer$,
Harlan Lunsford, EA n LA

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Harris posted:

- quote -

The interest you earn for this investment should be reported
on Schedule B. You can make an entry such as, "Mortgage
interest for property at 118 Elm St., Anytown, State, Zip --
paid by (your friend's name), SSN #000-00-0000."

That will take care of your reporting the income, and - of
course - that amount will be included in your total interest
income carried to line 8a on Form 1040.

Bill

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"Harris" <harrisk[at]charter.net> wrote

- quote -

But it is interest income, and should be on Schedule B as
such.

- quote -

If you send a 1098, the IRS will be looking for interest
income on your return. Use Schedule B or they'll just add
that amount to your return as 'unreported interest income',
and then you'll have a mess to fix.

--
Paul A. Thomas, CPA
taxman at negia.net

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harrisk[at]charter.net (Harris) writes:

- quote -

On Schedule B

Phil Marti
Topeka, KS

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- quote -

No, it's Schedule B Interest Income. If you report the
interest paid to by the mortgagee on a 1098 and he reports
the mortgage interest correctly on Schedule A, he will be
listing your name and SSN. The IRS will have all it needs to
look at your return to see that the interest income is
reported. It will look at Sch. B. An examiner *may* discover
the line 21 entry, or may not.

Ira Smilovitz

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I hold the mortgage on a friend's home. It is not a
seller-financed deal but just a case of lending a friend
money and having a properly prepared and filed mortgage on
the property. How do I report the earned interest on my
return? I like Line 21: Other Income, for it's simplicity.
Also plan on giving the buyer a mortgage 1098 and sending in
the 1098 and 1096 to Uncle. Is this the way to go about
this.

Thanks

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