I am planning on buying a residential real estate property from a homeowner "subject-to" the existing mortgage. In other words, I will be taking over and making the mortgage payments, but the seller/homeowner will still remain on the mortgage with the bank as he is now. I will not be "assuming" the mortgage, just taking over the payments.
I expect that the bank/mortgage-company will continue to issue a Form 1098 Mortgage Interest Statement each year showing the original borrower and the original borrower's social security number since I will not show up anywhere as being on the mortgage. However, the owner of the property will be me, and I will be paying those mortgage interest payments.
My questions have to do with how to handle those mortgage interest payments that I will be paying when it comes to doing my federal income tax returns.
Is there a way that I can legally and appropriately list those mortgage interest payments on my tax returns even though there will most likely not be any reporting by the mortgage company to the IRS of any such interest payments being made by me under my social security number?
I did visit
"Exceptions: You need not file Form 1098 for interest received from a corporation, partnership, trust, estate, association, or company (other than a sole proprietor) even if an individual is a co-borrower and all the trustees, beneficiaries, partners, members, or shareholders of the payer of record are individuals."
That, of course means that the bank/mortgage-company "... need not file Form 1098 for interest received from a corporation, partnership, trust, .... (etc)".
Does that mean that if I bought the property in the name of a single member LLC, for example, that it would be any easier to claim the mortgage interest payments on the LLC's tax returns than it would be if I bought the property in my own name and I wanted to deduct the mortgage interest payments on my own individual tax return?
Any thoughts, suggestions, or feedback would certainly be appreciated.
Thanks.