Instructions For Form 1098 - Mortgage Interest Statement

2018

Department of the Treasury

Internal Revenue Service

Instructions for Form 1098

Mortgage Interest Statement

Section references are to the Internal Revenue Code

Other general topics.

unless otherwise noted.

You can get the general instructions at

General

Instructions for Information

Returns, available at

IRS.gov/

Future Developments

1099generalinstructions, or

IRS.gov/Form1098.

For the latest information about developments related to

Form 1098 and its instructions, such as legislation

Specific Instructions

enacted after they were published, go to

IRS.gov/

Use Form 1098, Mortgage Interest Statement, to report

Form1098.

mortgage interest (including points, defined later) of $600

What's New

or more received by you during the year in the course of

your trade or business from an individual, including a sole

Mortgage insurance premiums (MIP). At the time

proprietor. Report only interest on a mortgage, defined

these instructions went to print, Congress had not

later.

extended the applicability of section 163(h)(3)(E) to

provide for the deductibility of MIP for 2018. To see if the

File a separate Form 1098 for each mortgage. The

applicability of this provision has been extended, and

$600 threshold applies separately to each mortgage, so

therefore reporting is required, go to IRS.gov/Form1098.

you are not required to file Form 1098 for a mortgage on

which you have received less than $600 in interest, even if

On-line pdf fillable Copies B and C. To ease statement

an individual paid you over $600 in total on multiple

furnishing requirements, Copies B and C have been made

mortgages. You may, at your option, file Form 1098 to

fillable on-line in a pdf format available at

IRS.gov/

report mortgage interest of less than $600, but if you do,

Form1098.You can complete these copies on-line for

you are subject to the rules in these instructions.

furnishing statements to recipients and for retaining in

your own files.

If an overpayment of interest on an adjustable rate

mortgage (ARM) or other mortgage was made in a prior

Reminder

year and you refund (or credit) that overpayment, you may

have to file Form 1098 to report the refund (or credit) of

General Instructions. In addition to these specific

the overpayment. See

Reimbursement of Overpaid

instructions, you should also use the 2018 General

Interest, later.

Instructions for Certain Information Returns. Those

general instructions include information about the

Also use Form 1098 to report MIP of $600 or more

following topics.

received by you during the calendar year in the course of

Who must file (nominee/middleman).

your trade or business from an individual, including a sole

When and where to file.

proprietor, but only if section 163(h)(3)(E) applies. See the

Electronic reporting requirements.

instructions for box 5 on page 6.

Corrected and void returns.

Statements to recipients.

Exceptions

Taxpayer identification numbers (TIN).

You need not file Form 1098 for interest received from a

Backup withholding.

corporation, partnership, trust, estate, association, or

Penalties.

company (other than a sole proprietor) even if an

Obligation classification 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.

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.

This applies even though the interest recipient classifies the obligation as other than a mortgage, for example, as a commercial loan.

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 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.

Nov 17, 2017

Cat. No. 27977Q

Instructions For Form 1098 - Mortgage Interest Statement - 2018

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