Question

In: Accounting

Does your 1098 show what you paid for real estate tax and interest if you sold...

Does your 1098 show what you paid for real estate tax and interest if you sold your home in April? Or is it the total real estate tax and interest on the 1098 for the entire year? What exactly does the 1098 real estate tax and interest mean?

Solutions

Expert Solution

Form 1098 is basically “Mortgage Interest Statement”.

This form is used to report to Internal Revenue Services, the amount of Mortgage Interest and points paid to the lender during the year.

The mortgage lender is required to issue Form 1098 to the borrower , to enable him to get tac rebate on interest paid.

Form 1098 is required to be filed if the mortgage interest including points is more than $600.

If a mortgage is not secured by a real property, form 1098 is not required to be filed.

The form 1098 issued by the lender contains information on amount of mortgage interest received from the borrower in Box 1.

It also contains information on points paid(box2),Refund of overpaid interest(box3), Box 4 may be used by lender to inform Real estate taxes.

Filling up of box 4 and box 5 are not mandatory. But additional information given in these boxed may be helpful to the borrower for tax purpose.

Other details in form 1098 are the name, address and social security number of the borrower, lenders name, address etc.

The interest paid can be deducted on Schedule A(itemized deduction).

Form 1098 is required to be filed by any one receiving $600 more mortgage interest from an individual. Separate form should be filed for each mortgage


Related Solutions

If you sold your home and there was a 1099-S, what tax form does that go...
If you sold your home and there was a 1099-S, what tax form does that go on and where? Would there be a capital gain or an ordinary gain on your home if there was one?
1. What does it mean when you are employed as an agent in the Real Estate?...
1. What does it mean when you are employed as an agent in the Real Estate? 2. Closing the seller - What does this mean in Real Estate?
Hugh, a self-employed individual, paid the following amounts during the year 2020: Real estate tax on...
Hugh, a self-employed individual, paid the following amounts during the year 2020: Real estate tax on Texas residence   $2,000 State income tax withheld   1,500 Additional state income tax paid when filing his 2019 tax return 600 Real estate tax on a rental property   2,000 State sales taxes 900 State motor vehicle tax (based on the value of personal use automobile) 400 Sidewalk special assessment   2,000 Federal income tax   5,000 Self-employment tax   1,000 Gambling loss (gambling winning is $100)   1,000 What...
Hugh, a self-employed individual, paid the following amounts during the year 2020: Real estate tax on...
Hugh, a self-employed individual, paid the following amounts during the year 2020: Real estate tax on Louisiana residence   $2,000 State income tax withheld   1,500 Additional state income tax paid when filing his 2019 tax return 600 Real estate tax on a rental property   2,000 State sales taxes 900 State motor vehicle tax (based on the value of personal use automobile) 400 Sidewalk special assessment   2,000 Federal income tax   5,000 Self-employment tax   1,000 Gambling loss (gambling winning is $100)   1,000 What...
please show ur work Real estate. In a sample of real estate ads, 64% of homes...
please show ur work Real estate. In a sample of real estate ads, 64% of homes for sale had garages, 21% have swimming pools, and 17% have both features. What is the probability that a home for sale has: a) A pool, a garage, or both? b) Neither a pool nor a garage? c) A pool but no garage? Real estate, part 2. In the real estate research described in Exercise 33, 64% of homes for sale have garages, 21%...
What minimum documentation does the purchaser need to provide at the real estate closing? And what...
What minimum documentation does the purchaser need to provide at the real estate closing? And what is a prepayment fee or premium, and how is it different from a late charge?
You are a real estate developer and are trying to determine the EMV of your net...
You are a real estate developer and are trying to determine the EMV of your net commission from a sales call to a potential purchaser. Assume that your transportation cost is $1.45 per mile Assume that the sales call is 70 miles round trip Assume that your transportation time is 2.25 minutes per mile Assume that the value of your time for transportation is $55.00 per hour Assume that it will take 3 hours to meet with the potential purchaser...
(10 marks) Lou is an employee at a large real estate agency and is paid a...
Lou is an employee at a large real estate agency and is paid a salary and commission on sales. He has negotiated the following benefits with his employer: Provision of a car for work and personal use. Lou was provided with the car for the period 1 April 2019 to 31 March 2020. The leased car value was $22,000 at 1 April 2019, and the car had only been leased for a year at that time. Lou is required to...
Description: You are in charge of real estate acquisitions for Malvern Associates, Inc., a real estate...
Description: You are in charge of real estate acquisitions for Malvern Associates, Inc., a real estate development company. Malvern is interested in purchasing for $5 million a shopping center owned by Carson Properties, Inc. which owns and manages several shopping centers. (A)         Draft an offer to purchase the shopping center. State terms which meet the requirements of the law plus give you the most control of the offer. Describe the relevant law. (B)         Now you represent Carson. Your company believes the price...
From a corporation’s point of view, does the tax treatment of dividends and interest paid favor...
From a corporation’s point of view, does the tax treatment of dividends and interest paid favor the use of debt financing or equity financing? Equity financing Debt financing Suppose a firm in the 40% federal-plus-state tax bracket needs to pay $1 in dividends to its shareholders. What is the pretax income it should have to pay this dividend? $1.00 $1.67 Cute Camel Woodcraft Company owns 248,500 shares in the Lazy Zebra Furniture. If Lazy Zebra has 350,000 shares of common...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT