Interest on a mortgage Loan

[cjrsktr]

What is the name of your state?What is the name of your state? Texas
We have an "Owner Financed" mortgage that we pay to someone who also has a mortgage on the same property. I know she is writing off the interest she pays on her note. I was wondering if I can write off the interest I pay to her on my federal return.

 

[Snipes5]

Yes. You will need her name, address, and SSN. She should be claiming the interest she is receiving from you, on her Schedule B.

Snipes

 

[cjrsktr]

Thank you snipes. I appreciate your advice

 

[Gracie3787]

Yes. You will need her name, address, and SSN. She should be claiming the interest she is receiving from you, on her Schedule B.

Snipes

I know this thread is a year old, but I wanted to ask a question about your answer to this poster.

I have the name, address, and business name of the man who we pay our mortgage to, but do not have his SSN. If he refuses to disclose his SSN, what, if anything, can I do to be able to deduct the interest on federal taxes.
Gracie

 

[tranquility]

For a "W-9" go to:
http://www.irs.gov/pub/irs-pdf/fw9.pdf#search="mortgage interest payment 9"

You will find the form you can use to request the SSN of the person you are paying. On the form it will describe the penalties and problems if they don't supply the number. ($50 penalty and you can withhold 28%.)

 

[LdiJ]

I agree with Tranquility....however, this is another one of those situations where you can also file a paper return and omit the SSN number of the person you are paying.

You would simply need to include a statement that the person refuses to cooperate and provide their SSN number. The IRS may ask you for a copy of your purchase/land contract or other proof that you are paying mortgage interest.

 

[Gracie3787]

Thank you both for your replies. You've been a huge help.
Gracie