1098 to borrower for S-D IRA interest?

[Paul Winka]

I have a self-directed IRA. I collect interest on loans made out of that account. Does the custodian or I have the requirement to send a 1098 to the borrower?

I should at least keep track of that and let the borrower know, yes? 

[Paul Winka]

@Shera Gregory Yes, it is my responsibility for the 1098. I've been unable to get a definitive answer on the 1098 though. I have to laugh though, I am in a loop...my CPA says talk to the self-directed IRA custodian. Self-directed IRA custodian says talk to the CPA for what to do. I agree, keep track of all interest received, whether I am taxed on it or not and provide a report to the borrower. If I am a decent lender at all, I should have this data anyway.

I am surprised more folks have not weighed in on this thread. Must be too busy doing tax preparation to answer questions about taxes. :)