What irs tax forms does the holder of an inter-family mortgage need to file?
A family member has extended me a mortgage on a house that I purchased. The mortgage was drawn up by an attorney and legally registered with the appropriate local authorities. The family member who extended the mortgage and who holds the note is an individual, ie not engaged in a business or trade. That seems to mean that he wouldn't have to file form 1098. But i was wondering if there is any other kind of form he would have to file with the IRS, or does he simply report the mortgage interest as income and I report the interest payments as a deduction? (i have the mortgage documents, lien and banks statements to show everything is legal and payments are being made in the event of an audit) Thanks in advance for any help/advice
Public Comments
- He reports the interest on his 1040 schedule B including your SSN. You report the interest on your 1040 schedule A including his SSN (you use a different line than 1098 interest).
