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fdurham1
New Member

How do I get TurboTax to enter seller-financed mortgage interest income on to Part 1 of Schedule B? I do not think the Installment Sale path is the correct method.

 
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1 Reply
DawnC
Employee Tax Expert

How do I get TurboTax to enter seller-financed mortgage interest income on to Part 1 of Schedule B? I do not think the Installment Sale path is the correct method.

Enter it in the Interest and Dividends section.   If the interest was received as part of a sale that's not reported as an Installment Sale, you should report it here as Interest from a Seller-Financed Loan.  A sale will not be reported as an Installment Sale in the following situations:

 

  • The sale does not result in a gain (for example, the sale was a loss, or the entire gain was excluded under the Primary Residence Exclusion) 
  • All payments were received in a single tax year, OR
  • You simply elect not to report the sale as an installment sale and treat the entire gain as taxable in the year of sale.

 

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