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Instructions for Form 1098 2006 Tax Year

Instructions for Form 1098 - Introductory Material

This is archived information that pertains only to the 2006 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.

Table of Contents

What's New

Mortgage insurance premiums.   The Tax Relief and Health Care Act of 2006 added new section 6050H(h), requiring the reporting of certain mortgage insurance premiums paid or accrued after December 31, 2006. See the instructions for box 4 on page 1098-4.

Reminder

In addition to these specific instructions, you should also use the 2007 General Instructions for Forms 1099, 1098, 5498, and W-2G. Those general instructions include information about:

  • Backup withholding

  • Electronic reporting requirements

  • Penalties

  • Who must file (nominee/middleman)

  • When and where to file

  • Taxpayer identification numbers

  • Statements to recipients

  • Corrected and void returns

  • Other general topics

You can get the general instructions from the IRS website at www.irs.gov or by calling 1-800-TAX-FORM (1-800-829-3676).

IF an obligation is... THEN...
Incurred after 1987 It is a mortgage if real property that is located inside or outside the United States secures all or part of the obligation. 1
Incurred after 1984 but before 1988 It is a mortgage only if secured primarily by real property.
In existence on December 31, 1984 It is not a mortgage if, at the time the obligation was incurred, the interest recipient reasonably classified the obligation as other than a mortgage, real property loan, real estate loan, or other similar type of obligation. 2
1 This applies even though the interest recipient classifies the obligation as other than a mortgage, for example, as a commercial loan.
2 For example, if an obligation incurred in 1983 was secured by real property, but the interest recipient reasonably classified the obligation as a commercial loan because the proceeds were used to finance the borrower's business, the obligation is not considered a mortgage and reporting is not required. However, it is not reasonable to classify those obligations as other than mortgages for reporting purposes if over half the obligations in a class established by the interest recipient are primarily secured by real property.

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