1- In order to deduct interest can I just calculate the interest portion based on 30 year mortgage amortization tables or should I get a separate statement from the seller? And,
2- What should I do about the social security number? I imagine IRS would also like to see some kind of social security or identification number in order to allow interest payment deductions.
A. I have two answers.
1- You can certainly calculate the interest deduction using a standard amortization schedule. There are several calculators available online. For example HSH Associates Financial Publishers website has an entire page of excellent mortgage and financial calculators. Be advised that the loan must be secured by the property to qualify as a mortgage.
2- According to IRS Publication 936 (Home Mortgage Interest Deduction) - “If you paid home mortgage interest to the person from whom you bought your home, show that person's name, address, and taxpayer identification number (TIN) on the dotted lines next to line 11” on Schedule A. You can try to enter the information without a TIN, writing “foreign individual – no TIN”.