Skip to content
BOL Conferences
Learn More - Click Here!

Thread Options
#2134776 - 06/19/17 02:28 PM 1098 Mortgage Interest - Payer of Record Question
MBTCompliance Offline
Gold Star
Joined: Apr 2015
Posts: 346
We have a mortgage to an LLC and Individual as borrowers. The Individual has requested us to report the 1098 interest to their other Corporation's EIN, not the LLC signed on the mortgage. The 1098 instructions indicate interest should be reported to the payer of record which would be the individual carried on our books and records as the principal borrower. If our books and records do not indicate a principal borrower, we may designate one. However, the Corporation is in no way named with the LLC and Individual signed on the mortgage. Therefore, it appears the interest should not be reported to their other Corporation as requested. What are your thoughts?

Return to Top
Operations Compliance
#2134779 - 06/19/17 02:33 PM Re: 1098 Mortgage Interest - Payer of Record Question MBTCompliance
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
From the form's instructions:

Use Form 1098, Mortgage Interest Statement, to report mortgage interest (including points, defined later) of $600 or more received by you during the year in the course of your trade or business from an individual, including a sole proprietor.

A loan to a corporation? A loan to an LLC? Neither is subject to information reporting. It's the individual's SSN or its nothing.
_________________________
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

Return to Top
#2134782 - 06/19/17 02:38 PM Re: 1098 Mortgage Interest - Payer of Record Question MBTCompliance
MBTCompliance Offline
Gold Star
Joined: Apr 2015
Posts: 346
Does this mean we are prohibited from reporting 1098 on an EIN, or does this mean we are not required to?

Return to Top
#2134789 - 06/19/17 03:11 PM Re: 1098 Mortgage Interest - Payer of Record Question MBTCompliance
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
It means that your reporting is not required, superfluous. Most banks set a flag to suppress reporting on LLCs and other entities. If you do set yourself the self-inflicted task of reporting, it would be a real mistake to report under a non-borrower's name.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#2134791 - 06/19/17 03:17 PM Re: 1098 Mortgage Interest - Payer of Record Question MBTCompliance
MBTCompliance Offline
Gold Star
Joined: Apr 2015
Posts: 346
Thanks guys, I appreciate the help.

Return to Top

Moderator:  Andy_Z, John Burnett