1098 Forms and Seasonal Addresses

1098 forms for the 2016 tax season require information regarding borrower address compared to collateral address on loans.  Box 7 may be incorrectly checked on the 1098 form if a Seasonal Address is being used.  For example, the customer lives in Nebraska and has a vacation home in Florida.  The customer has a loan for the vacation home in Florida.  If the customer is currently in Florida for the winter, the End of Year programs will assume that the addresses match and will mark box 7.  Box 8 should actually be checked since the customer’s permanent address is in Nebraska and does not match the Florida collateral address.

Reports can be run to determine if the seasonal address matches the collateral address on any loans.  The 1098 form would then need to be corrected.  Please contact Peak Consulting LLC for more information at info@peakconsultingllc.com or check out our website at www.peakconsultingllc.com.