Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 06-27-2012, 04:19 PM
Junior Member
 
Join Date: Jun 2012
Posts: 1
Exclamation Question about an amended return

I am filling out a Income Tax Amendment for for someone and I have a question. On the original return, the interest paid on a seller financed mortgage due to the fact that they did not have the identification number to include on the original return. Where on an amendment would this information go?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 06-27-2012, 11:55 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
“On the original return, the interest paid on a seller financed mortgage due to the fact that they did not have the identification number to include on the original return. Where on an amendment would this information go?”----> It is deductible on Sch A of 1040 just as if you were making payments to a traditional lender. ALSO homeowners have been able to deduct points paid by the seller. This deduction previously was reserved only for points actually paid by the buyer The main difference is that the seller may not provide monthly statements to you, and also may not provide you a 1099 after the end of the year to show you how much interest you've paid. So it's up to you to keep records and do caculations. Keep cancelled checks and/or bank statements so you can prove the payments you've made. Also, if it's an amortized loan, you're going to have to figure out how much of your payment has gone toward interest. A contract for deed doesn't take a seller's name off the mortgage loan, and the seller is responsible for ensuing that his lender receives payments by the due dates. However, contracts for deeds are recognized as a home sale by the IRS. Upon completion of the transaction, tax benefits associated with owning the property transfer from the seller to the buyer. No longer is the seller able to deduct the amount paid in mortgage interest, PMI or property taxes. At the end of the year, sellers must provide buyers with tax form 1098, which indicates the amount of interest and other mortgage-related costs paid by the buyer. The buyer then writes off these expenses on his tax return;according to IRS guidelines, the loan must be secured by the property. So if the proper deed of trust is not recorded, it may not be legal for you to claim the interest deduction.


Last edited by Wnhough : 06-28-2012 at 03:13 AM.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Amended state tax return sonali Miscellaneous 1 03-27-2012 10:55 AM
Amended return kheld3 Miscellaneous 0 03-12-2010 06:17 PM
Do I need to file an amended return? KLDanford Filing Requirements 0 10-08-2009 01:52 PM
What do I attach to my amended return? kgcpa Miscellaneous 0 03-31-2009 02:23 PM
Is it possible to e-File an Amended Tax Return? bookkeeping Miscellaneous 1 05-02-2008 11:12 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.