Unless I missed this in previous yr(s) is this new and is it a Federal itemized deduction if not where is it entered? Will the TP receive a form similar to a form 1098 from the lender?
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In most cases you will not receive a 1098. I run an amortization schedule for these type of loans and save it to client's folder. Sometimes the client brings in a statement from the lender.
Interest deduction goes in the same area as other mortgages. I usually say RV interest or Boat interest and lenders name because there will be no IRS matching from the lender.Last edited by BOB W; 01-10-2010, 06:27 PM.This post is for discussion purposes only and should be verified with other sources before actual use.
Many times I post additional info on the post, Click on "message board" for updated content.Comment
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I have even used it on a house boat. You can take the interest on two homes (and you can use the two with the most interest). It can be considered a home, if it has facilities, to eat, sleep and go potty. Of course do not put it on the same line with the 1098 mtg interest. I put it in on a separate line. This has been around for a long time.Comment
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Read Info In
Try TTB Chapter 4 and also Pub 936
for the specifics of what classifies the boat, rv, etc as a second home.
The interest deduction for this has been in effect for a while.
The deduction as Piglee stated deflintely has to go on the line 11 (not reported on Form 1098) of the Schedule A - otherwise a CP 2000 notice will be received. (Just had one)
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