aag <saag37[at]yahoo.com> wrote:

- quote -

From you post, you may not be eligible to deduct the
interest you pay to your father. He must declare the income
but you don't appear to meet the requirements for deducting
mortgage interest. Just drawing up a note and having it
notarized is not sufficient. It helps to prove that there
is an obligation but still not sufficent to support a
deduction. To be deductible as mortgage interest, the
payments to your father must have a valid lien on your
property. That is, he must have a mortgage and it must be
recorded with the appropriate local agency.

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saag <saa...[at]yahoo.com> wrote:

- quote -

Yes it will show as a debt, however, form 1098 is not
appropriate for a loan unless your father is in the business
of making such loans. I hope you made the house security
for the loan, and filed the note with your county, otherwise
you can't deduct it as home mortgage interest.

ed

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

saag <saa...[at]yahoo.com> wrote:

- quote -

Your brothers' accountant should not have filed a 1098
unless you father is in the business of loaning money on
mortgages. Father to son mortgages gnerally should not be
reported on 1098, however, they are still mortgages on a
home subject to your tax deduction and his paying tax on the
interest received.

ed

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

I recently took a loan from my father to pay off the bank
loan on the house. I signed a note for the loan and had it
notarized. My father declares the interest he gets on his
taxes and I deduct the interest I pay on mine. My brother's
accountant made a form 1098.

Is this going to show up as a debt of mine when going for
financial aid?

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >