Need to Create a 1098 Mortgage Interest form

[Chicago_FIRE]

Hi -

I sold a house in 2019 and am also financing it for the buyer with a 5 year balloon. I need to generate a 2019 1098 Mortgage Interest form for their Income Taxes, but I'm not certain what is the best template or software to use to create an 'official' IRS approved 1098. I'm sure there is a lot of expertise out here on this topic, so any suggestions would be appreciated. Thanks in advance!

 

[kgtest]

Hi -

I sold a house in 2019 and am also financing it for the buyer with a 5 year balloon. I need to generate a 2019 1098 Mortgage Interest form for their Income Taxes, but I'm not certain what is the best template or software to use to create an 'official' IRS approved 1098. I'm sure there is a lot of expertise out here on this topic, so any suggestions would be appreciated. Thanks in advance!

I could send you what mine looked like. IT was very simple... you can make this in a word processor/Xcel yourself

Looking at these numbers, so HAPPY I refinanced to 15yr last year. My balance has dropped considerably!

 

[SumDay]

I hold a couple of inherited promissory notes. I send them a simple Word document with my Name, Address and Tax ID # (Don't send them your SS #), the amount of interest they paid, and their remaining balance. They don't file it with the IRS, so it doesn't have to be a 'real' 1098. And I never file it with the IRS, but obviously do report it as interest received on my 1040.

One of my people asked me to just text her the amount of interest received because she's usually ready to file her taxes on the earliest possible date. How she's still able to itemize amazes me, but that's not my problem.

 

[kgtest]

How she's still able to itemize amazes me, but that's not my problem.

Lol. Good point. I stopped itemizing when the tax laws changed...was a better deal to take the STD deduction. Your tenant might not know if she is actually receiving a tax break or not and likely just plugs that # into TT cuz it asks for it.

 

[SumDay]

Lol. Good point. I stopped itemizing when the tax laws changed...was a better deal to take the STD deduction. Your tenant might not know if she is actually receiving a tax break or not and likely just plugs that # into TT cuz it asks for it.

Exactly. I'm not sure she realizes what "itemizing" means. AND, she is paying H&R Block to do this simple return for them. UGH...

 

[pb4uski]

https://www.irs.gov/pub/irs-pdf/f1098.pdf

https://www.irs.gov/pub/irs-prior/i1098--2019.pdf

 

[kgtest]

Exactly. I'm not sure she realizes what "itemizing" means. AND, she is paying H&R Block to do this simple return for them. UGH...

I bet she has something really fun in mind for her "refund"

 

[gauss]

I had to do this for my father's estate back in 2014. In my case it was not 1098 that needed to be filed but 1099-INT. What I found to be an easy solution was an outfit called tax1099.com. For ~ $5 I was able to e-file my submission and it went to both the IRS, as required, and mailed to the recipient.

If you read the link posted above by pb4uski (at least the 2018 version) you will see that the IRS will not accept the form as download in the pdf. You have to request the official forms be sent to you via US Mail. It is quite a hassle.

I think the other thing that factored into it was the fact that the IRS has later deadlines to file the 1098 if you efile vs sending in the paper forms (on their special paper). I think I was already behind at this point and looking at a $50 penalty, realizing that I didn't have the required forms in hand.

So check out 1099tax.com (or one of their competitors). I verified that they are still around and that they do service 1098s at the same rates that I was charged.

I recall it being easy to sign up. Ie. no 'business' credentials needed or anything like that.


-gauss

 

[SumDay]

I think the other thing that factored into it was the fact that the IRS has later deadlines to file the 1098 if you efile vs sending in the paper forms (on their special paper). I think I was already behind at this point and looking at a $50 penalty, realizing that I didn't have the required forms in hand.

At the risk of jinxing myself, my dad flipped and financed many, many houses over the years, living in his retirement off the monthly payments each buyer made. He, and his tax man, never filed a 1099-INT or 1098. When he (and now I) report the interest paid to me, I just include their SSN on the Schedule. They haven't zinged me yet. But I will sure keep this information for when they do. Good to know!

 

[gauss]

^ Thanks. The 1099-INT that I filed was unrelated to investment real estate, but rather my father's decedent estate. He received income under his SSN after his death which I needed/wanted to "nominee" to the proper legal owner of the money.

-gauss