Does Seller Finance recieve a reporting form?

[AZ-Tax]

Does Seller Finance recieve a reporting form (interest & principal paid to seller) from the title company that is servicing the loan and if so what is the form #? Is it a form 1098?

[Burke]

Does Seller Finance recieve a reporting form (interest & principal paid to seller) from the title company that is servicing the loan and if so what is the form #? Is it a form 1098?

Form 1098 goes to payor (buyer) if they send one. Seller can send one to buyer. Most don't, and just use the amortization schedule. Form 1099 for interest received goes to seller (if they send one.) Not sure it is required for seller-financing situations.

[AZ-Tax]

Title Co issued form 1098 but did not disclose their Fed ID

Form 1098 goes to payor (buyer) if they send one. Seller can send one to buyer. Most don't, and just use the amortization schedule. Form 1099 for interest received goes to seller (if they send one.) Not sure it is required for seller-financing situations.

The form issued by the Title Co. is 1099-Int Mortgage Interest I see the Title Co. did not disclose their Fed ID but the buyers (I guess payer) SS# is disclosed. So on form 6252, Installment Sales Income, I would enter the SS# of the buyer/payer correct?

[TAXNJ]

Confused

The form issued by the Title Co. is 1099-Int Mortgage Interest I see the Title Co. did not disclose their Fed ID but the buyers (I guess payer) SS# is disclosed. So on form 6252, Installment Sales Income, I would enter the SS# of the buyer/payer correct?

Your original post mentions the Seller. Then your reply mentions the Buyer.

Who sold the property on an Installment Sale? The buyer or seller? If the seller, you might want to look at TTB which has a good section (PAGES 3-2; 6-14-15) on form 6252 or the IRS web-site for what is reported on the form.

You also want to read how to report the Interest Income and information if you are doing the return for the seller.

Hope that helps or maybe I am confused.

[Burke]

A-Z, your title in the last post says Form 1098. But the body of the post says 1099. Form 1099 is an income statement for the person who receives interest to report on his Sche B. Form 1098 is for the mortgagor (the buyer of the home) and shows mortgage interest he paid for the year to be reported on his Sche A. If you are preparing Form 6252, then you are dealing with the seller. On the seller's tax return, the buyer's name & SSN goes on Line 1 of Sche B when reporting seller-financed interest. The principal received goes on Form 6252. There is no place to enter the buyer's SSN on Form 6252.