1098 for a Family member Loan

[John Laney]

Hello, 

Last year my dad gave me a 100k full recourse loan, at fair market interest rate, for a primary residence.

Looking at IRS pub 1098 https://www.irs.gov/pub/irs-pdf/i1098.pdf It looks like we need to fill out a 1098.  This allows me to deduct the interest expense.  

I've received 1098's from a bank but never created one my self. Is it that simple or am I missing something?

Thanks, 

John

[Nicholas Aiola]

@John Laney @John Thedford Is the loan secured by the property? If so, it's considered a mortgage and the lender should issue a 1098 to the borrower to reflect the interest paid. It is their obligation to do so. If they don't, it's their headache; you are still allowed to deduct the interest whether or not you received a 1098...if you paid it, you can deduct it.

If the loan is not secured by the property, it's not considered a mortgage and a 1099-INT form should be issued by the borrower to the lender to reflect interest paid throughout the course of the year.