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by your borrower. You can obtain a copy of the form by calling the IRS at 800-829-3676. You will also need to order IRS form 1096. When you complete form 1098, you’ll keep a copy and send a copy to your borrower. But in order to send the form to the IRS, you will need to complete form 1096. You then send both forms to the IRS.

However, if you have not sold the home to this person and he is merely renting the home from you until he can finance the $50,000 to complete the purchase, the payments he or she is making to you may simply be rent on the lease and you may not be required to complete the 1098 form.

The 1098 form is used for mortgage interest payments. If your tenant is truly considered a tenant, those payments made to you will either be considered rental payments or down payments toward a future closing price on the home.

If you are in doubt about how you structured the deal, talk to the attorney that assisted you in the transaction.

If you did not use an attorney, you might want to talk to one and make sure you structured the deal properly.

An accountant can help you determine whether the buyer/tenant is paying you rent or interest on the loan you gave him to purchase the home.

For further tax questions, please consult with a tax expert.

SAMUEL J. TAMKIN is a Chicago-based real estate attorney. ILYCE R. GLINK’s latest book is “Buy, Close, Move In!” If you have questions for them, write: Real Estate Matters Syndicate, PO Box 366, Glencoe, IL 60022 or contact them through Glink’s website, www.thinkglink.com.