Seller Finance - Who gets the Tax deduction from the 1098 form

[Andre Key]

I have a question to any that have been through the situation or that my have some expertise.

My question is I know when you buy a home for investment the taxes and interest on the mortagage are tax deductible.  I have a property that is seller finance and I still have the underlining mortagage in the sellers name.  Although the deed is in my name can I still get the tax credits from the interest and taxes paid, or does the mortgage holder get that since ther 1098 is in their name.

I kow this is a CPA question but I know there are plenty of smart people on BP..

[Dave Toelkes]

@Andre Key,

Your clarification does not change Scott's answer.  When claiming the mortgage interest deduction, the buyer should include the seller's name and SSN on his tax return and the seller should give the buyer a 1098 letter for the mortgage interest paid by the buyer to the seller.