Form 1098

[Questionguy101]

A law firm gave an employee a mortgage loan to buy a home. The employee makes monthly mortgage payments to the law firm. Is the law firm required to give the employee a Form 1098 and file a Form 1096 with the tax department. The law firm is engaged in trade or business but they are obviously not in the mortgage business.

What is the best way to handle the situation? Thanks.

[Chief]

Form 1098

iF THE firm gave a mortgage I would say that they should issue a 1098. Possibly report it on their return as interest received on the loan, any way they are required to give the ssn n interest received from the borrower. The 1098 route I think would be better.

[ChEAr$]

disagree

iF THE firm gave a mortgage I would say that they should issue a 1098. Possibly report it on their return as interest received on the loan, any way they are required to give the ssn n interest received from the borrower. The 1098 route I think would be better.

Law firm is not in that trade or business.
But it goes without saying they report the interest income. (grin