Re: subject to question - Posted by Jim FL
Posted by Jim FL on March 13, 2006 at 17:02:24:
This is not as complicated as you think.
When you own the property, and you make the payments, which include the interest, the tax benefits of this are yours…regardless of who’s name is on the loan.
So, when the 1098 comes in the mail, with the original barrowers name on it, use that to file your taxes.
When you do file, in the section where this interest is documented, there will be a form/question asking if the lender sent you a form with this info on it.
You simply check the box that says, “no”, and then complete the next part, where the form askes you to place the information that did come on the 1098.
The IRS does not care who’s name is on the form, just who paid the money out.