How do I print or generate Form 1098-Mortgage Interest in Property Management?

• To access the Year End Procedures Guide (United States), refer to Where can I find Year-End Procedures Guides (YEPG)?
• To determine which forms and paper to order, refer to Which forms should I order for year-end?

CAUTION: Sage Customer Support cannot assist with issues related to third-party products or enhancements, hardware, report customizations, state or federal tax-related questions, or specific accounting questions. Refer to our Scope of Support document for details. For assistance, contact your Sage business partner, network administrator, or accountant. 

Before you print 1098-Mortgage Interest forms on preprinted forms, complete the following tasks:

• Verify the Sage 300 CRE year-end update is installed
• Back up your Property Management files. Refer to How do I use File Tools to back up data files? (Supplemental Video)
• For 1098 Interest forms to calculate correctly, make sure you enter the appropriate information in the following Property Management fields:
  • Current interest paid (Setup, Properties, General tab, Status tab)
  • Tax amount (Setup, Properties, Tax tab) for the Tax ID that matches the Federal ID/EIN and Year that matches the tax year
  • Unit shares (Setup, Units, General tab, Class/Address/Rent tab)
  • Do not print 1098 form check box (Tasks, Manage Leases, Change Lease, General tab, Miscellaneous tab) is selected on the leases that should NOT receive a form 1098
  • Verify the Tax name, Tax ID, and Account Number are entered on the Tenant setup (Setup, Tenants, General tab, Controls tab)
    • Note: The IRS only allows hyphen "-" and ampersand "&" as special characters in the name fields (Tenant Name and Tax name fields). No other special characters are allowed (i.e. apostrophe, period, comma, slash, etc).
  • Verify the Address type selected for Send Interest Payments to on the lease is correct (Tasks, Manage Leases, Change Lease, General tab, Misc tab) and verify that the address for that address type is entered on the Tenant setup (Setup, Tenants, Address tab)
• Make sure you enter the appropriate information in the following General Ledger fields:
  • Address, City, St (State), ZIP, and Phone on the GL prefix (GL, Setup, Prefix/Base, [fiscal entity prefix])
  • Federal ID in Fiscal Settings (GL, Setup, Prefix/Base, [fiscal entity prefix], Fiscal Settings)
• Print the 1098 forms to plain paper and review the Status Report for errors and warnings

IMPORTANT: The IRS 1098 mortgage interest form changed significantly for reporting years 2016, 2017, and 2018.

• For reporting year 2016, Property Management only populates box 1 Mortgage interest received from payer(s)/borrower(s) and box 10 Other for real estate taxes
• For reporting year 2017, Property Management only populates box 1 Mortgage interest received from payer(s)/borrower(s) and box 11 Other for real estate taxes
• Beginning with reporting year 2018, Property Management only populates box 1 Mortgage interest received from payer(s)/borrower(s) and box 10 Other for real estate taxes
• Verify with your accountant regarding the additional boxes that may be required. These will have to be manually filled in

To generate 1098s:

1. In Property Management, from the Reports menu, select Forms, 1098-Mortgage Interest.
2. Click Next.
3. Select the source of the recipient name and address, GL Prefix or Data folder/Manual entry, then click Next.
   • If GL Prefix is selected, the information is retrieved from GL, Setup, Prefix/Base, [prefix A, prefix B, or prefix C], Fiscal Settings
   • If Data folder/Manual entry is selected, the information is retrieved from File, Company Settings, General, but you will need to enter the Federal ID
4. Select the properties to include. Hold down the CTRL key to select multiple properties, then click Next.
5. If you selected Data folder/Manual entry in step 3, review or enter the information in the Recipient Name and Address window, then click Next.
6. Select the reporting year, then click Next.
   Important: The data you have entered in the fields (Current interest paid, Tax amount, and Unit Shares) must be for the reporting year. If you select the prior year, the data entered in these fields must be for that year.
7. Enter the minimum reporting amount, then click Next.
8. Select No, this is the first time processing 1098 Interest for the year, then click Next.
   Note: If you have already printed and filed the 1098s and need to make a correction, you will select Yes, this is a corrected form.
9. Magnetic Media selection:
   • If you want to create magnetic media (txt file) to send to the IRS in addition to printing the 1098 forms, select Yes, produce magnetic media, then steps 9-11 in the 1098 Interest Forms wizard become available and must be completed:
     1. Select if you are reporting for the prior year or the current year, then click Next.
     2. Complete the Transmitter Information for the magnetic media file, then click Next.
     3. Complete the Contact Information, then click Next.
     4. Complete the Company Return Information, then click Next.
   • If you only want to print the 1098s, select No, only print 1098 Interest forms, then click Next.
10. Review the summary information. If you need to make corrections, click Back to go back to the appropriate windows to correct then proceed forward as normal. When the summary information is correct, click Finish.
11. If you selected to create the magnetic media file (txt file), you will be prompted to choose the location to save the IRSTAX file. Select the location in Save In, then click Save.
12. In the 1098-Mortgage Interest - Print Selection window:
    • Select 1098 Interest Forms, then click Printer Setup to choose the printer to print the forms to or mark Print to File to save to a print file, then click OK.
      • TIP: Save the form to a print file or PDF file. Then open the file and print to the printer with the forms. You may want to print one or two forms first to test the alignment. Keep the final print file/PDF file for historical reporting and/or to make reprinting easier.
    • Select Status report, then click Printer Setup to choose the printer to print the report to or mark Print to File to save to a print file, then click OK.
13. Click Start.
14. When completed, review your forms and the Status report.

Note: A 1096 form does not print. Use the information from the Status report to manually complete the 1096 form, if needed. Consult with your accountant if necessary.

Additional information is also available in the Year-End Procedures Guide and in Property Management Help Topics.

What amounts print on the 1098 Mortgage Interest statement?
Why is a lease missing from the 1098s in Property Management?