What is IRS Form 1098?
Of the many IRS tax forms, banks and other lending institutions use Form 1098 to report annual mortgage interest over $600. The mortgage must be “secured primarily by real property,” according to the IRS, which defines real property as “land and generally anything built on it,” including manufactured and mobiles homes of specified dimensions that are normally used in a fixed location. Certain house trailers and boats are qualify as well.SignificanceA form 1098 is a mortgage interest statement which lists the amount of mortgage interest which a taxpayer paid during the tax year. Any lender or business that received at least $600 in interest on a mortgage is required to furnish the payer with a 1098. One copy of the 1098 is forwarded to you, the taxpayer, and the other copy is forwarded to the IRS.PurposeYour lender forwards you the 1098 so that you can file it on your income tax return. Often, the interest paid on your mortgage payments is tax deductible, so it is imperative that you in
