I have a client that did in installment sale in 2007 for ain investment property that was held in his S-Corp. Now that 2008 is done, I am debating the need for a 1098 to be issued to the buyer. The buyer is paying the bank that financed the property directly. It seems the bank will issue a 1098 to my client for the interest paid, as he is the principle borrower. It would seem we have some interest income here, as the CFD buyer is paying a liability of the seller. My thought is to report the interest income by issuign a 1098 to the buyer, and then take the interest deduction to wash it out, as the only income associated with the sale will be this year's portion of the gain. Anyone have any ideas? Thanks!