Business, Legal & Accounting Glossary
Form 1098 is an IRS tax form filed by entities (individuals or businesses) to report mortgage interest amounts received during the tax year in the course of doing business. Form 1098 must be provided to taxpayers by mortgage lenders if a minimum amount of mortgage interest (set by the IRS) is received by the lender during the tax year (e.g. $600 in 2010). Taxpayers can include the information provided on Form 1098 on their yearly federal income taxes to determine the amount of deductions, if any, that can be used. A separate Form 1098 must be sent to taxpayers for each property that associated with an amount of mortgage interest above that minimum threshold. It is important to note that the Form 1098 filing requirements also apply to individuals who are not in the lending business, provided mortgage interest is received in the course of doing business. On the contrary, if an individual receives mortgage interest outside of a business or trade activity (e.g. as a result of mortgaging a personal residence), filing Form 1098 is not required. In addition to the standard Form 1098, there are three variations of Form 1098. They include:
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Definitions for Form 1098 are sourced/syndicated and enhanced from:
This glossary post was last updated: 9th February, 2020 | 2 Views.