Congress Adds Information Requirements To Form 1098

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Written by John Stancil | Posted in IRS • Tax Planning

When a mortgage lender receives $600 or more in interest from a borrower, it must file a Form 1098, indicating the amount of interest. Congress recently passed legislation that added some additional information to this information return. Information that must now be included is:

• The amount of the outstanding mortgage principal balance as of the beginning of the calendar year.

• The mortgage origination date

• The address of the property securing the mortgage.

No doubt, these additional information requirements are aimed at eliminating abuses in deducting mortgage interest, including caps on the amount of debt on which interest may be deducted and the number of homes that interest can be deducted on.

John Stancil

Dr. John Stancil (My Bald CPA) is Professor Emeritus of Accounting and Tax at Florida Southern College in Lakeland, FL. He is a CPA, CMA, and CFM and passed all exams on the first attempt. He holds a DBA from the University of Memphis and the MBA from the University of Georgia. He has maintained a CPA practice since 1979 with an emphasis in taxation. His areas of expertise include church and clergy tax issues and the foreign earned income credit. He prepares all types of returns, individual and business.

Dr. Stancil has written for the Polk County Business Journal and has presented a number of papers at academic conferences. He wrote the Instructor’s Manual for the 13th edition of Horngren’s Cost Accounting. He is published in the Global Sustainability as a Business Imperative, Green Issues and Debates, The Encyclopedia of Business in Today’s World, The Palmetto Business Review, The CPA Journal, and in the NATP TaxPro Journal. His paper, “Building Sustainability into the Tax Code” was recognized as the outstanding accounting paper at the annual meeting of the South East InfORMS. He wrote a book entitled “Tax Issues Faced by U. S. Missionary Personnel Abroad ” that will soon be published.

He has recently launched a new endeavor, Church Tax Solutions, which presents online, on demand seminars on various church and clergy tax issues.