1098’s issued on real estate held in an IRA
I have an IRA that holds real estate through an LLC. As custodian of the IRA we are generating a 1098 for the mortgage interest received from the Payer (LLC) to the IRA using the client’s SSN as the RECIPIENT’s federal ID number. Should this be from our company’s EIN number since we are custodian?
Any information would be greatly appreciated!
Marianne
Permalink Submitted by Alan Spross on Tue, 2012-07-31 19:10
The 1098 Inst indicate that the Form is to be issued to individual or sole prop payors. The IRA must pay interest on property owned by the IRA, not the IRA owner as that would be self dealing. Further, such mortgage interest on property held in a tax deferred account (IRA) is not deductible by the payor.
So I don’t think that a 1098 should be issued here.
Permalink Submitted by mk foss on Tue, 2012-07-31 22:39
I agree with Alan. Form 1098 is used by someone with a trade or business of lending that receives mortgage interest from an individual or sole proprietorship. None of the requirements seem to be met with the transaction as described.
Permalink Submitted by Brett King on Wed, 2013-07-24 04:55
It passed by to realtor newport beach the discussion of real estate that held in IRA which have a big issue but some agency help them to be solve it.