My parents loaned us money to purchase a house. how do we report mortgage interest without a 1098?

Forum|Forum|7 years ago
June 5, 2019
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Best answer by TomYoung

Your parents aren't obligated to provide a Form 1098 and although the interview and tax forms assume a Form 1098 is available, that's not always the case. Presumably you can figure out the interest paid based on the amount of the loan terms and the stated rate. The parents will report interest income "as if" they had received a Form 1099-INT and you'll report your interest deduction "as if" you'd received a Form 1098. There's no problem with that.

Tom Young

S

SweetieJean

Employee

Is there a signed loan agreement secured by the home, and filed with the county?

T

TomYoungAnswer

Employee

Your parents aren't obligated to provide a Form 1098 and although the interview and tax forms assume a Form 1098 is available, that's not always the case. Presumably you can figure out the interest paid based on the amount of the loan terms and the stated rate. The parents will report interest income "as if" they had received a Form 1099-INT and you'll report your interest deduction "as if" you'd received a Form 1098. There's no problem with that.

Tom Young

macuser_22

Employee

That is true, but as SweetieJean said, to be deducible a home loan must be secured by the property that can be sold as if the loan defaults. Many (many most) states require that secured home loans be registered with the county registrars office against the property title.. It requires a specific loan contract to qualify.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**