Didn’t receive 1098. Helping a friend here!

Tax, SDIRAs & Cost Segregation
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Didn’t receive 1098. Helping a friend here!

Matt RomanoPro Member
Realtor · Warren, RI · Member since 2017 · 96 posts · 52 votes
So I’m posting this on behalf of a friend of mine. Who purchased a SFH late last year (closed on Dec. 16th). This home was purchased with FHA and will be his primary residence. He didn’t get a 1098 form. And called the bank to inquire about this, and they said he wouldn’t be getting one. His loan has already been sold over to Fannie Mae (don’t think this is relevant). But he worries that he is missing on deductions he could / should be taking. He paid taxes and insurance at closing, and presumably some PMI too? Any insight on this stuff guys? Thanks in advance!!!
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  • Logan AllecBusiness Member
    Accountant · Los Angeles, CA · Member since 2014 · 1k+ posts · 980 votes
    8y

    @Matt Romano Any items he paid at closing should be on his settlement statement.

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  • Paul Allen
    Financial Advisor · Virginia Beach, VA · Member since 2017 · 502 posts · 508 votes
    8y

    If he was paid wages, but didn't get a W2, would he not report the income?  I would have 'not received' my W2s every year if that's how it worked!  :-)

    If he has legitimate deductions he should claim them whether he has received a 1098 or not. As @Logan Allec pointed out, there are other ways to determine the deductible amounts paid. 

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  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    8y
    The 1098 is for interest payments only, anyway. His insurance and PMI aren’t deductions.
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  • Matt RomanoPro Member
    OP
    Realtor · Warren, RI · Member since 2017 · 96 posts · 52 votes
    8y

    Thanks for the responses guys! Pretty sure the mortgage insurance is deductible though @Wayne Brooks Basically just the mortgage interest and the PMI are deductions. Does that sound right?

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  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · Sarasota, FL · Member since 2017 · 5k+ posts · 3k+ votes
    8y

    @Matt Romano , Yes PMI are deductible.

    Also, he can actually call IRS and get his copy of 1098 directly (Wage and Income transcript) from IRS if absolutely needed, It is a very simple process. 

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