Instructions For Form 1098 - 2013
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Department of the Treasury
Internal Revenue Service
Instructions for Form 1098
Mortgage Interest Statement
Section references are to the Internal Revenue Code unless
individual, including a sole proprietor. Report only interest on a
otherwise noted.
mortgage defined later.
Future Developments
The $600 threshold applies separately to each mortgage; thus,
file a separate Form 1098 for each mortgage. You may, at your
For the latest information about developments related to Form 1098
option, file Form 1098 to report mortgage interest of less than $600,
and its instructions, such as legislation enacted after they were
but if you do, you are subject to the rules in these instructions.
published, go to
If an overpayment of interest on an adjustable rate mortgage
What's New
(ARM) or other mortgage was made in a prior year and you refund
(or credit) that overpayment, you may have to file Form 1098 to
report the refund (or credit) of the overpayment. See
Truncating payer's/borrower's identification number on paper
Reimbursement of Overpaid Interest later.
payee statements. Pursuant to proposed regulations §§
1.6042-4(b) and 301.6109-4 (REG-148873-09), all filers of this form
Exceptions
may truncate a payer's/borrower's identification number (social
security number (SSN), individual taxpayer identification number
You need not file Form 1098 for interest received from a corporation,
(ITIN), or adoption taxpayer identification number (ATIN)) on payee
partnership, trust, estate, association, or company (other than a sole
statements. See part M in the 2013 General Instructions for Certain
proprietor) even if an individual is a co-borrower and all the trustees,
Information Returns.
beneficiaries, partners, members, or shareholders of the payer of
record are individuals.
Mortgage Insurance Premiums. IRC 163(h)(3)(E) has been
extended through December 31, 2013. Report mortgage insurance
Mortgage Defined
premiums in box 4.
A mortgage is any obligation secured by real property. Use the table
Reminder
below to determine which obligations are mortgages.
General Instructions. In addition to these specific instructions, you
Real property is land and generally anything built on it, growing
should also use the 2013 General Instructions for Certain
on it, or attached to the land. Among other things, real property
Information Returns. Those general instructions include information
includes a manufactured home with a minimum living space of 400
about the following topics.
square feet and a minimum width of more than 102 inches and
which is of a kind customarily used at a fixed location. See section
Backup withholding.
25(e)(10).
Electronic reporting requirements.
Penalties.
If property that secures the loan is not real property, you are not
Who must file (nominee/middleman).
required to file Form 1098. However, the borrower may be entitled to
When and where to file.
a deduction for qualified residence interest, such as may be the
Taxpayer identification numbers.
case for a boat, which has sleeping space and cooking and toilet
Statements to recipients.
facilities, that the borrower uses as a home.
Corrected and void returns.
Lines of credit and credit card obligations. Interest (other than
Other general topics.
points) received on any mortgage that is in the form of a line of credit
You can get the general instructions at
or
or credit card obligation is reportable regardless of how you
by calling 1-800-TAX-FORM (1-800-829-3676).
classified the obligation. A borrower incurs a line of credit or credit
card obligation when the borrower first has the right to borrow
Specific Instructions
against the line of credit or credit card, whether or not the borrower
actually borrows an amount at that time.
Use Form 1098, Mortgage Interest Statement, to report mortgage
Who Must File
interest (including points, defined later) of $600 or more received by
you during the year in the course of your trade or business from an
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
Table
IF an obligation is...
THEN...
Incurred after 1987
It is a mortgage if real property that is located inside or outside the United States secures all or part of
the obligation.
1
Incurred after 1984 but before 1988
It is a mortgage only if secured primarily by real property.
In existence on December 31, 1984
It is not a mortgage if, at the time the obligation was incurred, the interest recipient reasonably classified
the obligation as other than a mortgage, real property loan, real estate loan, or other similar type of
obligation.
2
This applies even though the interest recipient classifies the obligation as other than a mortgage, for example, as a commercial loan.
1
For example, if an obligation incurred in 1983 was secured by real property, but the interest recipient reasonably classified the obligation as a commercial loan because the proceeds were used
2
to finance the borrower's business, the obligation is not considered a mortgage and reporting is not required. However, it is not reasonable to classify those obligations as other than mortgages
for reporting purposes if over half the obligations in a class established by the interest recipient are primarily secured by real property.
Mar 01, 2013
Cat. No. 27977Q
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