Discussion:Identification of private lender on tax return
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| Revision as of 22:34, 25 March 2009 Quirk (Talk | contribs) (Futenma. Right.) ← Previous diff |
Revision as of 03:36, 26 March 2009 Jake (Talk | contribs) (People may have) Next diff → |
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| {{ForumReplyPost|UserID=Quirk|Date=25 March 2009|Text=Futenma. Right. I don't think that that is the issue either. The issue, I think, is that, must the lender provide that information or not? The Computer says yes, but then who believes the computer. I do think it strange that someone could say that they borrowed money from someone, and not identify that source. Does this not fly in the face of the IRS "matching program"? And if that is the case then how would anyone know that the interest paid was bona fide?}} | {{ForumReplyPost|UserID=Quirk|Date=25 March 2009|Text=Futenma. Right. I don't think that that is the issue either. The issue, I think, is that, must the lender provide that information or not? The Computer says yes, but then who believes the computer. I do think it strange that someone could say that they borrowed money from someone, and not identify that source. Does this not fly in the face of the IRS "matching program"? And if that is the case then how would anyone know that the interest paid was bona fide?}} | ||
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| + | {{ForumReplyPost|UserID=Jake|Date=26 March 2009|Text=People may have reasons other than trying to hide income for not providing their ss number to the borrower. An individual mortgage lender would have to be pretty dumb not to report interest income when he knows that the payer is reporting it as Mortgage Interest not on a 1098. From time to time over the years I have been a private mortgage lender and you can be sure I have always reported that interest income, but I never disclosed my ss# to the borrower. I list it on Schedule B as interest received from (name of borrower). When the borrower was an individual I also made sure I had a mortgage deed from the borrower and also had that deed recorded as that is key to that borrower's abiliy to deduct.}} | ||
Revision as of 03:36, 26 March 2009
Discussion Forum Index --> Advanced Tax Questions --> Identification of private lender on tax return
Discussion Forum Index --> Tax Questions --> Identification of private lender on tax return
| 23 March 2009 | |
| Can't find the answer to this right off the top of my head, so need some help. I have a client who has financed the purchase of his home through a number(5) of private parties. They do not want to give their SS numbers or any other identification. Ha, ha, I think I know whats going on here, but isn't there a requirement for this information on the return if the T/P wants to be able to deduct it? Like perhaps, the IRS' matching program? | |
| 23 March 2009 | |
| Deback. Thanks, but I think I am going to need Chapter and Verse to reply to the lender, who says that he has been doing this for years! | |
| 25 March 2009 | |
| Futenma. Thanks, however, that reference states that if any taxpayer claims a deduction for qualified residence interest of their return they shall include the TIN, name and address of the lender. Likewise, in the same section, the seller-providing lender is required to provide TIN, name and address. However, the instructions for the Form 1098 state that if the lender is not in the business of lending money, or is not the seller of the property, they are not required to provide said information. My situation is with private lenders. My tax program will not let me past not providing the information. So? Ideas? | |
| 25 March 2009 | |
| 6109 only requires that you report the TIN if it's the person you bought the residence from, "seller provided financing." From your 1st post, I'm not sure if your client is even required to report the TIN's. But if he is, then 6109(h)(3) requires both of them to provide the other his TIN. I agree that the 1098 is not required, but that really isn't the issue. | |
| 25 March 2009 | |
| Futenma. Right. I don't think that that is the issue either. The issue, I think, is that, must the lender provide that information or not? The Computer says yes, but then who believes the computer. I do think it strange that someone could say that they borrowed money from someone, and not identify that source. Does this not fly in the face of the IRS "matching program"? And if that is the case then how would anyone know that the interest paid was bona fide? | |
| 26 March 2009 | |
| People may have reasons other than trying to hide income for not providing their ss number to the borrower. An individual mortgage lender would have to be pretty dumb not to report interest income when he knows that the payer is reporting it as Mortgage Interest not on a 1098. From time to time over the years I have been a private mortgage lender and you can be sure I have always reported that interest income, but I never disclosed my ss# to the borrower. I list it on Schedule B as interest received from (name of borrower). When the borrower was an individual I also made sure I had a mortgage deed from the borrower and also had that deed recorded as that is key to that borrower's abiliy to deduct. | |
