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.