IRS to scrutinize home loans more closely in 2017 [Video]
Posted on Tuesday, February 14, 2017 at 7:18:04 PM
A recently implemented regulatory change means that the IRS is going to be taking a closer look at mortgage financing in 2017. According to the Washington Post, an obscure statutory change Congress passed in 2015 means that Form 1098 - a traditional document submitted by a lender to the IRS that adds up how much a homeowner paid in interest in the previous year - will now include more detailed information about the borrower.
The form will now include information elating to the amount of the outstanding principal balance at the beginning of the year, the origination date of your mortgage and the address of the home securing the loan. What this means for borrowers is that the tax deductions that have long been an advantage of being a homeowner will now be more thoroughly reviewed by IRS auditors. The goal, according to lawmakers, is to be able to gather more information about homeowners who currently hold home loans.
If you are confused about the way this change in regulation may affect your home loan, contact your lender today.