1098 Question

1098 box 7 & 8 - why does the IRS want to know if the property securing the loan is the same as the payer's/borrower's address? Anyone know?

"Box 7. If the address of the property securing the mortgage is the same as the payer's/borrower's, either the box has been checked, or box 8 has been completed.

Box 8. This is the address or description of the property securing the mortgage."

I think ours printed out wrong because of the way we are using our system. I assume because this is our government that I'm going to have to fix a gazillion forms before they can be mailed out?

Because they may be using that to determine if the property is a primary residence.

Thank you. I've already started on cleanup. I couldn't stand them not being right.

They are also providing a way to show the property securing the loan if the borrower uses a P O Box address.

John, That is probably the real reason. Not sure why I didn't think of that. Old age is getting the better of me, I suppose

If old is age is getting the better of you, Randy, it's already gotten the worst of me.

Another related 1098 question.....it has come to my attention that mortgage insurance premiums are not deductible for 2017. Does the bank still need to report/include MIPs on the 1098?

The IRS instructions for the completion of 2017 Form 1098 indicate to report MI premiums received if they exceed $600. The instructions note that you should check the IRS web site for an update on whether Congress extended the deductibility of MI premiums. I checked the link, and there is no update referring to that provision.

So it appears that the latest instructions are to report MI premiums on the 2017 Form 1098. As to whether those premiums are deductible, that would be up to each taxpayer's tax preparer to determine.

Not sure if I need to start a new thread, but I saw this thread for a 1098.

1. For Trust accounts with tax-ID that is actually one of the trustee's SSN, do we issue a 1098?

2. Box 10 - number of mortgaged properties. How would that be defined? For example, how many properties would the following address be counted as?

(a) 10, 14, & 18 ABC STREET - would this be counted/viewed as 1 or 3 properties?

(b) 10-18 ABC STREET - this would be 1 property correct?

Thanks.

Bump

Exceptions
You need not file Form 1098 for interest received from a corporation, partnership, trust, estate, association, or company (other than a sole proprietor) even if an individual is a co-borrower and all the trustees, beneficiaries, partners, members, or shareholders of the payer of record are individuals.

I don't think that there is any definition of multiple properties. I would not think it would have anything to do with addresses, but might be more closer in line to whether there are multiple parcels of land involved.

I recognize this is the 2018 1098, and so it isn't binding, but it does provide clarification that I think is better than the 2017. It's what I'm going to rely on for the 2017 numbers, not that we have many multiple property loans.

2018 Instructions https://www.irs.gov/pub/irs-pdf/i1098.pdf



2017 Instructions https://www.irs.gov/pub/irs-pdf/i1098_17.pdf

Great, thanks guys.


Another question just came up, besides e-filing the 1098 to IRS, do we need to separately file it to State, say if you were filing in California?

https://www.irs.gov/pub/irs-pdf/p1220.pdf

For box 10, number of mortgaged properties - some of my colleagues are saying we need to put "1" even if the mortgage is only secured by 1 property and some say that we leave the box blank. Please advise.

What part of "If there is more than one property securing the mortgage," are they misunderstanding?

thanks rlcarey.

I think there is slight confusion since some of them personally received their own 1098 forms and their lender put a "1" even if the mortgage was secured by 1 property.