Posted by John on March 12, 2006 at 10:30:47:
Ron
EH get aliitle harsh sometimes, to put it mildly.
With the loan amount, interest rate, 1st payment date, and a financial calulator, You can figure exactly how much is principal and how much is interest.
subject to question - Posted by ron
Posted by ron on March 11, 2006 at 18:27:32:
If you get a deed from a seller
and the loan is still in the sellers name
the lender will send the form at the end of the year showing what interest the seller paid.
When in reality you, the investor paid it
and you would need to account for the income you are making from the rent.
Since that form 1098? not sure what it is for interest paid to lender, since it’s not in your name, how do you get around this?
Re: subject to question - Posted by Jim FL
Posted by Jim FL on March 13, 2006 at 17:02:24:
Ron,
This is not as complicated as you think.
When you own the property, and you make the payments, which include the interest, the tax benefits of this are yours…regardless of who’s name is on the loan.
So, when the 1098 comes in the mail, with the original barrowers name on it, use that to file your taxes.
When you do file, in the section where this interest is documented, there will be a form/question asking if the lender sent you a form with this info on it.
You simply check the box that says, “no”, and then complete the next part, where the form askes you to place the information that did come on the 1098.
The IRS does not care who’s name is on the form, just who paid the money out.
HTH,
Jim FL
Re: subject to question - Posted by george
Posted by george on March 11, 2006 at 20:12:12:
You paid the interest on YOUR property. The loan being in the former owner’s name is irrelevant, providing both of you don’t try to claim the same deduction.
Re: subject to question - Posted by ron
Posted by ron on March 13, 2006 at 17:09:14:
ok thanks for clarifying it
that makes sense
Re: subject to question - Posted by ron
Posted by ron on March 11, 2006 at 21:17:43:
what form do you have to show to the IRS to prove this
I guess if you paid on a contract for deed, you wouldn’t have this form either thanks
Re: subject to question - Posted by Greg (FL)
Posted by Greg (FL) on March 13, 2006 at 21:18:34:
Ron,
In case you were wondering, that was a jewel.
Greg(FL)
Re: subject to question - Posted by Equity Hunter
Posted by Equity Hunter on March 11, 2006 at 22:09:59:
You don’t have a form. You have your cancelled checks assuming you ever get audited in the first place. Get with the previous owner to get the exact amt if that is possible. Or most lenders have a web site from which you might be able to get the exact figure. If you are an accountant, you shouldn’t be in this business.
Re: subject to question - Posted by ron
Posted by ron on March 12, 2006 at 02:07:38:
If you are an accountant, you shouldn’t be in this business
not sure what this means
Re: subject to question - Posted by Equity Hunter
Posted by Equity Hunter on March 12, 2006 at 17:14:33:
Like I was just told concerning another post… Reread the post. Maybe you missed something.