Which of the following loans is clearly NOT subject to the IRS mortgage interest reporting requirement?
Which of the following loans is clearly NOT subject to the IRS mortgage interest reporting requirement?
The IRS mortgage interest reporting requirements apply to loans secured by real property, which typically include loans secured by residences or other types of real estate. Option C describes a loan made to purchase a lot on a lake but secured by a certificate of deposit, which is a financial instrument, not real property. Thus, this loan is clearly not subject to the IRS mortgage interest reporting requirement.
Option C, however, involves a loan secured by a certificate of deposit, which is not real property. Since the IRS mortgage interest reporting requirements apply to loans secured by real property, a loan secured by a financial instrument like a certificate of deposit would not be subject to these mortgage interest reporting requirements. This makes option C clearly not subject to the IRS mortgage interest reporting requirement.