Relocation Service

[Wendy]

My son works for the US Government and was transferred to Washington DC this year. The gov't arranged for the "purchase" of his former home through Sirva Relocation Services. They paid him the equity and took over the payments on the mortgage. They apparently record the deed and pay off the mortgage when the property is re-sold. There is a contract stating that they are assuming liability for the mortgage as of 9/12. This is not a 1031 exchange.

The last mortgage payment my son made was in September, but the 1098 shows interest paid for the entire year in his ss#. What is the best way to handle this? Do we back out 3 mos interest and show it to Sirva's EIN?

Thanks for your help.

Wendy F. Katz, EA

[kcjenkins]

Just claim his interest that he paid. It's not a problem when you claim less than they reported, only when you claim more than reported. No need to send anything to Sirva. Just report his sale, based on his contract, on the D, and take the §121 exclusion if applicable.

[Elrod]

Wendy,

I would check with the mortgage company, there may be other charges assigned to him

that they allow as interest.

He may be able to deduct it all.

This was a case I had at one time. Remember if it's in his name and he doesn't deduct it,

then it's just gone to everyone.

My best, Elrod... :rolleyes:

[Wendy]

Thanks for your help. Why is it always FAMILY that presents challenges?