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Sandi Hargrove, SkyHawks
Sandi Hargrove, SkyHawks, Master Tax Advisor, Enrolled Agent
Category: Tax
Satisfied Customers: 1257
Experience:  I am a Master Tax Advisor and Enrolled Agent. I have 40 years experience. Trucking specialist.
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how to report mortgage interest RECEIVED by individual...

Resolved Question:

my parents issued me a mortgage on my home how do they report the interest i pay them. currently they issue me a 1098 and 1096 is filed aswell but the form askes for 04 # XXXXX which they dont have they then pick up int on sch b....can they treat as a gift the interest portion instead each year and just not file on this issue and apply my surplus payment to next years mortgage?
Submitted: 9 years ago.
Category: Tax
Expert:  Sandi Hargrove, SkyHawks replied 9 years ago.

The interest must be listed on their Schedule B (including your name, address and ss#) even if they do gift you the interest.

Total gifts to you that exceed 11000 (including this gifted interest) must also be listed by them on a Gift Tax Return which can reduce their Unified Credit for their Estate and Gifts before any gift tax is actually due.

Customer: replied 9 years ago.
ok thanks i will accept answer shortly......forgeting the gift aspect do my parents need to fill out the 1096 and 1098 as well as the sch b?
Expert:  Sandi Hargrove, SkyHawks replied 9 years ago.
They should file form 1098 and 1096 if the interest is 600 or more since they are not a financial institution.
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