Contract for deed needs my social for taxes

2 Replies

Hi all. We sold a house on a contract for deed. Now their tax person needs our social security numbers for tax reasons. I would rather not have my social out there on every tax form of every person I sell to on a contract for deed. I realize now that maybe I should've set up an LLC, but what do you advise? Do I have to provide it? Is there a way around it?
Thanks!

Originally posted by @Jennifer Rysdam :

Hi all. We sold a house on a contract for deed. Now their tax person needs our social security numbers for tax reasons. I would rather not have my social out there on every tax form of every person I sell to on a contract for deed. I realize now that maybe I should've set up an LLC, but what do you advise? Do I have to provide it? Is there a way around it?
Thanks!

 Normally, yes. But the way around it is to give the buyer the 1098 with your SSN cut out (if you simply use a pen to black it out, a good scanner will still see the underlying number) so cut out your SSN and then they can use the form by putting their SSN in for tax purposes. I'm not sure why they would need your SSN other than that. you might ask.

Do they really pay enough interest to itemize? If the buyers are married and not close to $12k per yr it's a moot point anyway.

I use a note servicing bank for all my contracts. The servicer handles the 1098s and amortization schedule for a few bucks a month. They also hold all the original ppwk.

I couldn't imagine asking  my sellers for their social!

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