Form 1098 - Mortgage Interest Statement - 2017 (Page 4 of 6) in pdf

Instructions for Payer/Borrower

Box 2. Shows the outstanding mortgage principal on the mortgage as of

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

January 1, 2017.

housing corporation) who is engaged in a trade or business and, in the course of

such trade or business, received from you at least $600 of mortgage interest

Box 3. Shows the date of the mortgage origination.

(including certain points) on any one mortgage in the calendar year must furnish

Box 4. Do not deduct this amount. It is a refund (or credit) for overpayment(s)

this statement to you.

of interest you made in a prior year or years. If you itemized deductions in the

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

year(s) you paid the interest, you may have to include part or all of the box 4

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

amount on the “Other income” line of your 2017 Form 1040. No adjustment to

about the proper distribution of amounts reported on this form. Each borrower is

your prior year(s) tax return(s) is necessary. For more information, see Pub. 936

entitled to deduct only the amount he or she paid and points paid by the seller

and Itemized Deduction Recoveries in Pub. 525.

that represent his or her share of the amount allowable as a deduction. Each

Box 5. If an amount is reported in this box, it may qualify to be treated as

borrower may have to include in income a share of any amount reported in box 4.

deductible mortgage interest. See the 2017 Schedule A (Form 1040) instructions

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

and Pub. 936.

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

Box 6. Not all points are reportable to you. Box 6 shows points you or the seller

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

paid this year for the purchase of your principal residence that are required to be

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

reported to you. Generally, these points are fully deductible in the year paid, but

Payer's/Borrower's taxpayer identification number. For your protection, this

you must subtract seller-paid points from the basis of your residence. Other

form may show only the last four digits of your SSN, ITIN, ATIN, or EIN.

points not reported in box 6 may also be deductible. See Pub. 936 to figure the

However, the issuer has reported your complete identification number to the

amount you can deduct.

IRS.

Box 7. If the address of the property securing the mortgage is the same as

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

the payer's/borrower's, the lender may have checked this box, and boxes 8 and

assigned to distinguish your account.

9 will be blank. If not, either box 8 or 9 will be completed.

Box 1. Shows the mortgage interest received by the recipient/lender during the

Box 8. This is the address of the property securing the mortgage.

year. This amount includes interest on any obligation secured by real property,

Box 9. This is the description of the property securing the mortgage, if box

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

7 is not checked and box 8 is not completed.

include points, government subsidy payments, or seller payments on a

“buydown” mortgage. Such amounts are deductible by you only in certain

Box 10. If more than one property secures the loan, shows the number of

circumstances. Caution: If you prepaid interest in 2017 that accrued in full by

properties mortgaged. If only one property secures the loan, this box may be blank.

January 15, 2018, this prepaid interest may be included in box 1. However, you

Box 11. The interest recipient may use this box to give you other information,

cannot deduct the prepaid amount in 2017 even though it may be included in

such as real estate taxes or insurance paid from escrow.

box 1. If you hold a mortgage credit certificate and can claim the mortgage

Future developments. For the latest information about developments related to

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

Form 1098 and its instructions, such as legislation enacted after they were

equity, line of credit, or credit card loan secured by your personal residence, you

published, go to

may be subject to a deduction limitation.

Form 1098 - Mortgage Interest Statement - 2017 Page 4

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