Form 1098 - Mortgage Interest Statement - 2010 (Page 3 of 5) in pdf

Instructions for Payer/Borrower

A person (including a financial institution, a governmental unit, and a

mortgage. Such amounts are deductible by you only in certain

cooperative housing corporation) who is engaged in a trade or business and,

circumstances. Caution: If you prepaid interest in 2010 that accrued in full

in the course of such trade or business, received from you at least $600 of

by January 15, 2011, this prepaid interest may be included in box 1.

mortgage interest (including certain points) on any one mortgage in the

However, you cannot deduct the prepaid amount in 2010 even though it may

calendar year must furnish this statement to you.

be included in box 1. If you hold a mortgage credit certificate and can claim

the mortgage interest credit, see Form 8396. If the interest was paid on a

If you received this statement as the payer of record on a mortgage on

mortgage, home equity, line of credit, or credit card loan secured by your

which there are other borrowers, furnish each of the other borrowers with

personal residence, you may be subject to a deduction limitation.

information about the proper distribution of amounts reported on this form.

Each borrower is entitled to deduct only the amount he or she paid and

Box 2. Not all points are reportable to you. Box 2 shows points you or the

points paid by the seller that represent his or her share of the amount

seller paid this year for the purchase of your principal residence that are

allowable as a deduction. Each borrower may have to include in income a

required to be reported to you. Generally, these points are fully deductible in

share of any amount reported in box 3.

the year paid, but you must subtract seller-paid points from the basis of your

residence. Other points not reported in box 2 may also be deductible. See

If your mortgage payments were subsidized by a government agency, you

Pub. 936 to figure the amount you can deduct.

may not be able to deduct the amount of the subsidy. See the instructions

for Form 1040, Schedule A, C, or E for how to report the mortgage interest.

Box 3. Do not deduct this amount. It is a refund (or credit) for

Also, for more information, see Pub. 936 and Pub. 535.

overpayment(s) of interest you made in a prior year or years. If you itemized

deductions in the year(s) you paid the interest, you may have to include part

Payer’s/Borrower’s identification number. For your protection, this form may

or all of the box 3 amount on the “Other income” line of your 2010 Form

show only the last four digits of your SSN, ITIN, or ATIN. However, the issuer

1040. No adjustment to your prior year(s) tax return(s) is necessary. For more

has reported your complete identification number to the IRS and, where applic-

information, see Pub. 936 and Itemized Deduction Recoveries in Pub. 525.

able, to state and/or local governments.

Box 4. Shows mortgage insurance premiums which may qualify to be

Account number. May show an account or other unique number the lender

treated as deductible mortgage interest. See the Schedule A (Form 1040)

has assigned to distinguish your account.

instructions.

Box 1. Shows the mortgage interest received during the year. This amount

Box 5. The interest recipient may use this box to give you other information,

includes interest on any obligation secured by real property, including a

such as the address of the property that secures the debt, real estate taxes,

home equity, line of credit, or credit card loan. This amount does not include

or insurance paid from escrow.

points, government subsidy payments, or seller payments on a “buy-down”

Form 1098 - Mortgage Interest Statement - 2010 Page 3

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