TaoWanderer
Member
What is the name of your state (only U.S. law)? NV
Sold a land on installment sale in 2007. Just became aware of such a thing as a 1098 form. Do I need to send a 1098 form to the payer of my note? On my 2007 tax return I wrote that I my occupation was “Real Estate Investor”, because Turbo Tax said to just put whatever activity made you the most money that year. I bought the land to live on and eventually build a house, but plans changed and I sold the land. So, while I want to be a real estate investor someday, my purchases and this my only sale have all been properties that I bought to use for myself. I don’t know if since I said I was a “Real Estate Investor”, if the IRS would be expecting me to send the 1098 form.
The IRS instructions state:
Who Must File
File this form if you are engaged in a trade or business and, in the course of such trade or business, you receive from an individual $600 or more of mortgage interest on any one mortgage during the calendar year. You are not required to file this form if the interest is not received in the course of your trade or business. For example, you hold the mortgage on your former personal residence. The buyer makes mortgage payments to you. You are not required to file Form 1098.
For information about who must file to report points, see Points on page 2.
Not in the lending business. If you receive $600 or more of mortgage interest in the course of your trade or business, you are subject to the requirement to file Form 1098, even if you are not in the business of lending money. For example, if you are a real estate developer and you provide financing to an individual to buy a home in your subdivision, and that home is security for the financing, you are subject to this reporting requirement. However, if you are a physician not engaged in any other business and you lend money to an individual to buy your home, you are not subject to this reporting requirement because you did not receive the interest in the course of your trade or business as a physician.
Sold a land on installment sale in 2007. Just became aware of such a thing as a 1098 form. Do I need to send a 1098 form to the payer of my note? On my 2007 tax return I wrote that I my occupation was “Real Estate Investor”, because Turbo Tax said to just put whatever activity made you the most money that year. I bought the land to live on and eventually build a house, but plans changed and I sold the land. So, while I want to be a real estate investor someday, my purchases and this my only sale have all been properties that I bought to use for myself. I don’t know if since I said I was a “Real Estate Investor”, if the IRS would be expecting me to send the 1098 form.
The IRS instructions state:
Who Must File
File this form if you are engaged in a trade or business and, in the course of such trade or business, you receive from an individual $600 or more of mortgage interest on any one mortgage during the calendar year. You are not required to file this form if the interest is not received in the course of your trade or business. For example, you hold the mortgage on your former personal residence. The buyer makes mortgage payments to you. You are not required to file Form 1098.
For information about who must file to report points, see Points on page 2.
Not in the lending business. If you receive $600 or more of mortgage interest in the course of your trade or business, you are subject to the requirement to file Form 1098, even if you are not in the business of lending money. For example, if you are a real estate developer and you provide financing to an individual to buy a home in your subdivision, and that home is security for the financing, you are subject to this reporting requirement. However, if you are a physician not engaged in any other business and you lend money to an individual to buy your home, you are not subject to this reporting requirement because you did not receive the interest in the course of your trade or business as a physician.