Owner financing tax reporting - Posted by Earl

Posted by Sean on March 05, 2002 at 02:09:39:

John,

If the owner doesn’t report the Interest Income then I assume one of you could get in trouble in an audit? Is there any other potential liabilities and is there any way to require them to file the 1098?

Owner financing tax reporting - Posted by Earl

Posted by Earl on February 20, 2002 at 16:05:59:

When an owner (seller) finances a sale, how is the interest payments reported, to me and IRS, so that they can be deducted? Banks are (usually) good about sending out the information, but what about scattered sellers.

Thank you,

Earl

Re: Owner financing tax reporting - Posted by JHyre in Ohio

Posted by JHyre in Ohio on February 21, 2002 at 13:13:00:

The note holder is supposed to send out Form 1098’s to the government and the note maker. That lets everyone know how much interest is income to the note holder, and how much is potentially deductible to the note maker. Private sellers often neglect this task…you can still deduct the interest, just list the lender, even if a private party. They’d best have reported the interest income…

John Hyre