My spouse and I own a house that we rent out for additional income. I reported the house on Part I because it produced more than $200 in income for the reporting period (and it is worth more than $1,000). Last year on my annual OGE Form 450, I also reported the mortgage on the house on Part II because the mortgage exceeds $10,000. There appears to be a change in the regulation this year. Is it true that I do not have to report the mortgage as a liability on Part II?
Probably. The regulation was amended, and filers no longer have to report mortgages on rental property as long as the mortgage is from a financial institution or business entity and the mortgage was granted on terms made available to the general public. If your mortgage meets these criteria, you don't have to report it on the form as a liability even though you may have in the past.