In response to criticism that the IRS was not properly monitoring mortgage interest deductions, Congress was asked to require lenders to report more information about the loans. In 2015 Congress passed the new reporting rules, and they went into effect for tax year 2016. Homeowners will see the result this year in a newly designed Form 1098, which is used to report mortgage interest. The new form will include the mortgage origination date, the balance at the end of last year and the address of the property securing the loan, as well as other information useful to the IRS.
With this new wealth of information, it’s expected that the IRS could direct more attention and audit resources toward checking mortgage interest deductions.
Note: These simplified examples are intended for informational purposes only. There are exceptions, definitions, special circumstances, etc. that are not covered. This article is not a substitute for professional advice directed to your personal situation. Therefore, we urge you to contact us if you have specific questions.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Charlie Benway is president of Main Street Financial LLC, a fee-only financial planning firm. He is a CPAand Certified Financial Planner™ who advises clients on taxes and investments in a fiduciary capacity.
-
Looming Jan. 19 TikTok Ban Sparks Tax Rebellion Among CreatorsTax Law The TikTok community faces an uncertain future. However, one thing remains clear: tax laws apply regardless of the app’s fate.
-
Macy’s Will Close 66 Stores in 2025 – Check If Your Local Store Is One of ThemDiscover why Macy’s is closing 66 stores, where to shop for similar deals and how to maximize savings before stores shut down.
-
Converting Retirement Savings to a Roth IRA? Don't Do ThisYou might want to convert all of your savings to a Roth in one go, but you could end up paying hundreds of thousands more in taxes than you have to.
-
California Wildfires and Insurance: Looking for HelpLos Angeles-based insurance expert Karl Susman shares the view from his agency’s office as all hands are on deck to help their policyholders.
-
Asset Protection for Affluent Retirees in 2025Putting together a team of advisers to assist with insurance, taxes and other financial issues can help with security, growth and peace of mind.
-
The Tax Stakes for 2025: Planning for All PossibilitiesIt's unclear whether extending the TCJA provisions for individuals is likely, so what can you do to reduce your overall tax bill either way?
-
A Strategic Way to Address the Tax-Deferred DisconnectWhat you don't know could cost you a fortune. Here's how to make the most of a tax-deferred retirement account and possibly save your heirs a bunch on taxes.
-
To Insure or Not to Insure: Is Life Insurance Necessary?Even if you're young and single with no dependents, you may need some life insurance. Here's how to figure out what and how much you may need.
-
Irrevocable Trusts: So Many Options to Lower Taxes and Protect AssetsIrrevocable trusts offer nearly endless possibilities for high-net-worth individuals to reduce their estate taxes and protect their assets.
-
How to Organize Your Financial Life (and Paperwork)To simplify the future for yourself and your heirs, put a financial contingency plan in place. The peace of mind you'll get is well worth the effort.
