You are invited to forward to friends, colleagues and clients.
Sponsored by New Century Mortgage.
Become a New Century mortgage broker and access FastQual for 12 second loan approvals.
1. Did you remember your 1098 tax forms?
2. Sample private mortgage leads.
3. Have you been the victim of paying too much for a seminar or other material on real estate, mortgages or Note Broking?
1. Did you remember your 1098 tax forms?
The first question is, are you required to send out 1098 tax returns?:
If you or your company, corporation, partnership or trust are in a trade or business and you receive mortgage interest incident to your trade or business, and you receive interest payments from individuals and these individuals paid you
more than $600 in interest in a calendar year, you must:
a) Provide a Form 1098 by January 31 of each year to each individual who paid
you at least $600 of mortgage interest in the last year.
b) You also must send a copy of the form 1098 to the IRS along with the summary form 1096 by February
28.
Notice the following:
a) You only need to report the interest paid to you (or your company, trust etc) by individuals, not the interest paid by corporations, trusts, estates, partnerships etc.
b) If the individuals pay you less than $600 in the calendar year, you don't need to report it on a 1098.
c) If you have to file a report you still only need to file it for those individuals who paid you more than $600 in total interest.
d) If you only hold a few mortgages and are not in a trade or business then you do not have to send in Forms 1098 to your borrowers or the IRS.
e) You still need to report the income you receive on your tax return.
If you are NOT in the mortgage business then you would include this income on your schedule B. If you have taken back seller financing, you also may have to report and pay capital gains tax on the proportion of gain you have received during the year.
If you ARE in the mortgage business then you would report the income on Schedule C and also deduct the expenses of running that business.
If you should but don't send in the 1098 reports you can be fined $50 per form.
Our recommendation it to send your borrowers the 1098 forms even if you are not required to by law. It will help them with their tax preparation.
Here is a link to form 1096 on the IRS web site.
Here is a link to form 1098 on the IRS web site.
Note that they say you cannot actually use these forms and they are for information only. The form 1098s should appear 3 on a page. As a practical matter, I have not heard of anyone being fined for using these forms. Especially if you are not strictly required to send them, one might be tempted at least to use these forms for the borrowers part. You can obtain the proper forms from the IRS or most office supply stores.
2. Sample private mortgages names and addresses.
Full details on about 1,000 private mortgages. With our compliments.
This is a large file and this page may take several minutes to appear.
Sample privately owned mortgages
3. Have you been the victim of paying too much for a seminar or other material on real estate, mortgages or Note Broking?
There is a lot of free and fairly priced information out there on how to make money in real estate investment, private mortgages or note broking. Unfortunately there are many companies that make it their business to sucker people into buying over-priced seminars, boot-camps, books and tapes about the real estate and mortgage business.
We have heard of one 3-day course that charges $9,000! Other courses sell for $1,000 plus.
Let's work the numbers. If someone charges 100 people $100 for a 1-day seminar they have grossed $10,000 for the day. Subtract the cost of materials provided, room rental etc. and let's call it $9,000 a day.
Do that every day and you're making a very respectable $3.3 million a year!
So how do some people get away with fees of $1,000 + per day?
They run late night TV ads, use telemarketing or offer free seminars in your town.
The marketing is mostly a collection of pictures of checks that were supposedly earned by their students. They provide supposedly typical examples of deals that their students have done. They appeal to people who are hungry to escape the rat race. They usually provide money back guarantees (full of weasel clauses). And of course will take your credit card!
(By comparison Harvard College (perhaps the most prestigious educators in the nation) charge under $30,000 for a YEAR of education.
Harvard College Web Site)
Many of these companies are constantly in trouble with the Federal Trade Commission and State Attorney offices.
If you feel you have been hoodwinked into paying a vast amount of money to get into a business in which you struggled and struggled but never found the easy riches you were promised, please tell us your story. We would love to publish your story on our web site (with or without your name, as preferred).
Tell us your story
For many useful tools you may not have known we have, go to: More real estate and mortgage resources.
