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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10110
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I sold a house in 2015 and am holding a mortgage buyer. Is

Customer Question

I sold a house in 2015 and am holding a mortgage for the buyer. Is it necessary for me to complete a form 1098?
Submitted: 10 months ago.
Category: Tax
Expert:  Lane replied 10 months ago.

Hi - I hold a JD (Juris Doctorate, a doctoral degree in the law), concentration in Tax Law & Corporate law, an MBA (specialization in finance & tax), and BBA from Mercer University’s Stetson School of Business and Economics, as well as CFP® and CRPS designations. I can help here

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No, since you are not in the lending business and the loan wasn't (I'm assuming) for a property that was part of a real-estate development on your part, you are not required to file 1098s or 1099s. If you'd LIKE, you can voluntarily file 1098s even though they're not required, to make sure everyone is using the same numbers on their tax returns.

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But the common practice for your situation is not to file a 1098.

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Here's the IRS guidance on this: https://www.irs.gov/instructions/i1098/ar02.html#d0e169

If you don’t file 1098s for your loans, you should send your borrowers something showing what your records have for the prior year’s payments in terms of principal and interest so that they can use the same figures for their tax returns.

Expert:  Lane replied 10 months ago.

Hope this has helped … let me know if you have questions

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If this HAS helped, (and you don’t have additional questions on this), I'd really appreciate your positive rating … (by using the stars on your screen) … … That’s the only way I'll be credited a portion of what you've paid JustAnswer.

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Thank you,

Lane

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