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Lev, Tax Preparer
Category: Finance
Satisfied Customers: 29558
Experience:  Personal Investment, Tax Preparation
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I purchased a home with private money financing from a

Customer Question

I purchased a home with private money financing from a lender with a self directed IRA. Should they issue me a 1098? the lender says no and has given me the amount of interest I paid, but turbotax wont accept that and says that I would have to file by mail and write a note explaining. I will be getting a refund so it's no big hurry except that I could use the money ASAP
JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?
Customer: not sure, lol
Submitted: 2 months ago.
Category: Finance
Expert:  Lev replied 2 months ago.

Private lenders do NOT issue form 1098.

You should be able to e-file without form 1098 as long a you have tax identification of the lender.

On the Schedule A - that amount is reported on line 11.

On the dotted line below line 11, you need to write the lender's name, address and taxpayer identification number to show where the interest was paid.

The IRS will verify that the private lender reports that interest as income.

Customer: replied 2 months ago.
Turbotax won't let me e-file that way, I guess I'll have to print it out and mail it in with a letter of explanation
Expert:  Lev replied 2 months ago.

As long as you have a proper tax ID of the creditor - you should be able to file.

I know in 2015 TurboTax did not allow INIT for lender, but that was corrected.

You might want to communicate with their Tech support or

you may just mail your tax return as you suggested and we do not much time.

Do you have any tax due? If not - that will not make any difference - just will delay your refund.

Expert:  Lev replied 2 months ago.

If you still have any doubts, need clarification - please be sure to ask.
I am here to help you with all Social Security / Tax related issues.