Generate 1098-Mortgage Interest forms

• Access the Year End Procedures Guide for more information
• Determine which forms and paper to order

CAUTION: Sage support can't assist with third-party products, hardware, report customizations, or state and federal tax questions. Refer to our Scope of Support for more info. Contact your Sage business partner, network administrator, or accountant for assistance.

Before you begin

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

• Verify you installed the Sage 300 CRE year-end update.
• Back up your Property Management files.
• For 1098 Interest forms to calculate correctly, 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 matching Federal EIN Tax ID and matching tax Year.
  • Unit shares (Setup, Units, General tab, Class/Address/Rent tab).
  • Select Do not print 1098 form check box on leases that don't receive a form 1098. Check Tasks, Manage Leases, Change Lease, General tab, Miscellaneous tab.
  • Verify you entered the Tax name, Tax ID, and Account Number for the Tenant. Check Setup, Tenants, General tab, Controls tab.
    • The IRS only allows hyphen "-" and ampersand "&" in the name fields (Tenant Name and Tax name fields). They don't allow other special characters (for example an apostrophe, period, comma, slash, etc.).
  • Verify you selected the correct Address type for Send Interest Payments to on the lease. Check in Tasks, Manage Leases, Change Lease, General tab, Misc tab.
  • Verify you entered the address for that address type 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 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.

Generate 1098s

1. Go to Property Management, Reports, 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.
   • GL Prefix: It retrieves the information from General Ledger, Setup, Prefix/Base, [prefix A, prefix B, or prefix C], Fiscal Settings
   • Data folder/Manual entry: It retrieves the information from File, Company Settings, General, but you 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, enter information in the Recipient Name and Address window. Click Next.
6. Select the reporting year, then click Next.
   Important: Enter data for the reporting year in the Current interest paid, Tax amount, and Unit Shares fields. If you select the prior year, enter data for the prior year in these fields.
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. Select Yes, this is a corrected form to correct a previous form.
9. Magnetic Media selection, if needed:
   • Select Yes, produce magnetic media and complete steps 9-11 in the 1098 Interest Forms wizard.
     1. Select if you’re 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. Click Back to go back to the appropriate windows if you need to correct anything. Click Finish when you're done.
11. If you selected to create the magnetic media file, 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. Click Printer Setup to choose the printer or mark Print to File to save the file. Click OK.
      • We recommend that you save the form to a print file or PDF file. You can open the file and print to the printer with the forms. 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. Click Printer Setup to choose the printer or mark Print to File to save the file. Click OK.
13. Click Start.
14. When completed, review your forms and the Status report.

A 1096 form doesn’t print. Use the information from the Status report to the 1096 form manually, if needed. Consult with your accountant if necessary.

What amounts print on the 1098 Mortgage Interest statement?

Why is a lease missing from the 1098s in Property Management?