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L
lenarzj
February 11, 2021
Question

I paid interest to another person for land purchased on a contract for deed. How do I report that to them and the IRS?

  • February 11, 2021
  • 1 reply
  • 0 views
Land purchased on a contract for deed. I need to report interest I paid to the seller. How do I generate a 1098 for them on turbotax home and business?

    1 reply

    M
    MinhT1
    February 11, 2021

    When you pay mortgage interest to a bank, the bank which receives the interest will issue you (the borrower) a form 1098.

     

    In your case, you are the borrower and you do not issue form 1098.

     

    The interest you pay is not deductible as it is not mortgage interest paid on your primary or secondary residence.

     

    However, you can consider it as carried interest and add it to the cost basis of your land.

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