Page 348 - Individual Forms & Instructions Guide

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
Shared interest reported on your If you don't show the required property held for investment. It doesn't
Form 1098. If the shared interest was ! information about the recipient include any interest allocable to passive
reported on the Form 1098 you received, CAUTION or let the recipient know your activities or to securities that generate
deduct only your share of the interest on SSN, you may have to pay a $50 penalty. tax-exempt income.
line 8a. Let each of the other borrowers Complete and attach Form 4952 to
know what their share is. Interest reported on someone else’s figure your deduction.
Form 1098. If you and at least one oth-
Shared interest reported on someone er person (other than your spouse if fil- Exception. You don't have to file Form
else's Form 1098. If the shared interest ing jointly) were liable for and paid in- 4952 if all three of the following apply.
was reported on the other person's Form terest on the mortgage, and the home 1. Your investment interest expense
1098, report your share of the interest on mortgage interest paid was reported on is less than your investment income
line 8b (as explained in Line 8b, later). the other person’s Form 1098, identify from interest and ordinary dividends mi-
Form 1098 doesn’t show all interest the name and address of the person or nus any qualified dividends.
paid. If you paid more interest to the re- persons who received a Form 1098 re- 2. You have no other deductible in-
cipient than is shown on Form 1098, in- porting the interest you paid. If you are vestment expenses.
clude the larger deductible amount on filing a paper return, identify the person
line 8a and explain the difference. If you by attaching a statement to your paper 3. You have no disallowed invest-
are filing a paper return, explain the dif- return and printing “See attached” to the ment interest expense from 2021.
ference by attaching a statement to your right of line 8b. Alaska Permanent Fund divi-
paper return and printing “See attached” ! dends, including those reported
to the right of line 8a. Line 8c CAUTION on Form 8814, aren't invest-

If you are claiming the mort- Points Not Reported on ment income.
! gage interest credit (for holders For more details, see Pub. 550.
CAUTION of qualified mortgage credit Form 1098
certificates issued by state or local gov- Points are shown on your settlement
ernmental units or agencies), subtract statement. Points you paid only to bor- Gifts to Charity
the amount shown on Form 8396, line 3, row money are generally deductible
from the total deductible interest you over the life of the loan. See Pub. 936 to You can deduct contributions or gifts
paid on your home mortgage. Enter the figure the amount you can deduct. you gave to organizations that are reli-
result on line 8a. Points paid for other purposes, such as gious, charitable, educational, scientific,
for a lender's services, aren't deductible. or literary in purpose. You can also de-
Line 8b Refinancing. Generally, you must de- duct what you gave to organizations that
duct points you paid to refinance a mort- work to prevent cruelty to children or
If you paid home mortgage interest to a
recipient who didn’t provide you a Form gage over the life of the loan. This is animals. Certain whaling captains may
1098, report your deductible mortgage true even if the new mortgage is secured be able to deduct expenses paid in 2022
interest on line 8b. Your deductible by your main home. for Native Alaskan subsistence bowhead
mortgage interest may be less than what If you used part of the proceeds to whale hunting activities. See Pub. 526
you paid if one or more of the limits on improve your main home, you may be for details.
home mortgage interest apply to you. able to deduct the part of the points rela- To verify an organization's charitable
For more information about these limits, ted to the improvement in the year paid. status, you can:
see Limits on home mortgage interest, See Pub. 936 for details. • Check with the organization to
earlier. If you paid off a mortgage ear- which you made the donation. The or-
Seller financed mortgage. If you paid TIP ly, deduct any remaining points ganization should be able to provide you
home mortgage interest to the person in the year you paid off the with verification of its charitable status.
from whom you bought the home and mortgage. However, if you refinanced • Use our online search tool at
that person didn’t provide you a Form your mortgage with the same lender, see IRS.gov/TEOS to see if an organization
1098, write that person's name, identify- Mortgage ending early in Pub. 936 for is eligible to receive tax-deductible con-
ing number, and address on the dotted an exception. tributions (Publication 78 data).
lines next to line 8b. If the recipient of Examples of Qualified
your home mortgage payment(s) is an Line 8d Charitable Organizations
individual, the identifying number is
their social security number (SSN). Oth- Reserved for future use The following list gives some examples
erwise, it is the employer identification of qualified organizations. See Pub. 526
number (EIN). You must also let the re- Line 9 for more examples.
cipient know your SSN. • Churches, mosques, synagogues,
Investment Interest temples, and other religious organiza-
tions.
Investment interest is interest paid on
money you borrowed that is allocable to • Scouts BSA, Boys and Girls Clubs
of America, CARE, Girl Scouts, Good-

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