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3 Answers

Are the Mortgage interest and property taxes paid at closing included in the annual 1099?

Asked by: sleff 810 views YA Discussion

Purchased condo and paid prorated interest and taxes at closing. Are these amounts reported in the lenders 1099? Or how are these funds accounted for in my tax?

3 Answers

  1. tro on Apr 06, 2013 Reply

    no, the 1098 you receive is only for the mortgage payments you make to the lender
    the escrow fees are handled thru the escrow, the mortgage lender has no control at that point

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  2. cynic47 on Apr 06, 2013 Reply

    The 1098 covers your payments to the lender. At the closing, your prorated interest payment went to the lender, and so WILL be on their 1098. Your prorated property tax payment, however, went to the prior homeowner, to reimburse them for the property taxes they paid in advance. Thus, the prorated property taxes will NOT be on the lender’s 1098, but will be on the settlement statement you received when you closed the purchase of your home.

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  3. Max Hoopla on Apr 06, 2013 Reply

    Prorated interest and taxes will be on your closing statement. The Form 1098, not 1099, only shows interest and taxes paid through loan payments.

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