Form 480.7A Guide: What Private Lenders in Puerto Rico Need to Know

What is Form 480.7A?

Form 480.7A (Declaracion Informativa — Ingresos Sujetos a Retencion) is a Puerto Rico tax form required by Hacienda when you receive interest income from a private mortgage or seller-financed property sale. If you financed the sale of a property and your buyer makes monthly payments that include interest, you need to file this form.

Think of it as the Puerto Rico equivalent of the federal Form 1098 — it reports the interest portion of payments received during the tax year. Both the lender (you) and the borrower receive copies, and Hacienda uses it to verify that interest income is properly reported.

Who needs to file?

Any individual or entity in Puerto Rico that receives interest income from a private mortgage or seller-financed transaction must file Form 480.7A. This includes: individuals who sold a property with seller financing (owner financing), private lenders who issued a mortgage, and anyone holding a promissory note secured by real property in Puerto Rico.

If you're a mainland US lender with a Puerto Rico property, you may still need to file if the property is located in PR. Consult with your CPA for cross-jurisdiction situations.

When is it due?

Form 480.7A must be filed annually by January 31st for the previous tax year. For example, interest received during 2026 must be reported on a 480.7A filed by January 31, 2027.

Late filing can result in penalties from Hacienda. The form must also be provided to the borrower by the same deadline so they can use it for their own tax filing.

What information is required?

The form requires: your name and Social Security Number (or EIN), the borrower's name and SSN, the property address, the total interest paid during the tax year, the outstanding principal balance as of December 31, and the original loan amount.

The critical number is the interest calculation. Each monthly payment on an amortizing loan is split between principal and interest. The interest portion changes every month as the principal balance decreases. Getting this wrong means incorrect tax reporting for both you and your borrower.

The interest calculation challenge

For a standard amortizing mortgage, the interest portion of each payment is calculated as: (outstanding balance x annual interest rate) / 12. As the borrower pays down the principal, the interest portion decreases and the principal portion increases.

If you're tracking this in a spreadsheet, one late payment, one extra payment, or one missed month throws off every subsequent calculation. By December, the cumulative error can be significant — and you won't know until your CPA tries to reconcile the numbers.

How to generate Form 480.7A automatically

Tools like g²Lend calculate the interest split for every confirmed payment throughout the year. When January comes, you enter the SSN at the moment of generation (it's never stored), and the form is produced as a downloadable PDF with all the correct numbers.

The form includes all required fields: lender and borrower information, total interest paid, outstanding balance, and property details. You get the lender copy and the borrower copy, ready to file with Hacienda and provide to your borrower.

Form 480.7A vs. Form 1098

If you also need to file with the IRS (which you do if either party has federal tax obligations), you'll need Form 1098 in addition to 480.7A. The 1098 reports the same interest income but in the IRS format.

The good news: the underlying data is the same — total interest received and outstanding balance. If your 480.7A numbers are accurate, your 1098 numbers will be too. Tools that generate both from the same payment data eliminate the risk of discrepancies between your Puerto Rico and federal filings.