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IRS 1098- Ownership of Property

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Question: 
The IRS 1098 reporting instructions do not address the ownership of the real property subject to a loan and are we required to report for commercial loans too? Assuming all the conditions are met for a commercial real estate loan (borrower is an individual, payer is an individual, and the interest paid is over $600), should we really ignore the ownership of the property? We have a case in which the real property is owned by an affiliate business entity which is an LLC.
Answer: 

The payer of record is the individual carried on your books and records as the principal borrower.

Deductibility is the taxpayer's issue - you just report.

First published on 12/01/2019

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