Form 1098 & Beneficial Owner

[JohnH]

I think we've discussed this before, but naturally I can't find it when I need it. The parents borrrowed money to help their daughter and her husband buy a home. The loan is in the parents' name and the deed is also in their name. The daughter and her family live in the home and the daughter & husband have made all the payments. There is a "Contract for Deed" recorded with the local register of deeds. This is a true "beneficial owner" situation - no hanky panky going on.

The 1098 came in the name of the parents, of course. Should the daughter & husband simply deduct the interest on their tax return on Schedule A, Line 11 and the parents do nothing on their return?

[dan doshan]

Sounds OK. Have read a case or two where the IRS didn't go along with this beneficial ownership thing for whatever reason. However, normally it should be OK. Parents would not do anything.
You mention contract for deed. Assume the parents purchased from the owner. Question is now... on line 11 do you put the parents name and or the owner of the contract for deed.