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taxes0631
Returning Member

Where on the 1065 to I report interest paid to LLC financed mortage. I reported the sale last year.

 
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Rick19744
Level 12

Where on the 1065 to I report interest paid to LLC financed mortage. I reported the sale last year.

Based on the facts, the interest income should be reflected on Sch K line 5 and also on Sch K-1 line 5 for each member of the LLC.   This is just portfolio interest since earning interest is not the main activity of the LLC (ie lending institution).

I assume you have an amortization schedule that will provide you with the information you need based on payments received.

The principal of the note will be reflected on your balance sheet as an asset.

*A reminder that posts in a forum such as this do not constitute tax advice.*

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11 Replies
Rick19744
Level 12

Where on the 1065 to I report interest paid to LLC financed mortage. I reported the sale last year.

Need some additional details as the current facts are not sufficient to provide a response.
*A reminder that posts in a forum such as this do not constitute tax advice.*
taxes0631
Returning Member

Where on the 1065 to I report interest paid to LLC financed mortage. I reported the sale last year.

The house was part of a LLC . We never lived in the house, it was always a rental. We sold it last year and claimed the whole sale. This year I have to claim the interest on the self financed loan. I thought I had to claim it on the 1065 as business interest earned but I can't find a place for it, So now I'm thinking I have to claim it as Income on my 1040 because the sale of  house has already been claimed. Is this right?
Rick19744
Level 12

Where on the 1065 to I report interest paid to LLC financed mortage. I reported the sale last year.

A couple of follow-up questions:

1) You sold the rental that was owned by the LLC and picked up the entire gain and paid all of the tax, even though you did not receive all the sale proceeds?
2) Confirm that you elected out of the installment sale method even though you have not received all the proceeds
3) Who holds the note?  The LLC or you individually?
4) Does this LLC have other rentals, or what other business is the LLC involved in?
*A reminder that posts in a forum such as this do not constitute tax advice.*
taxes0631
Returning Member

Where on the 1065 to I report interest paid to LLC financed mortage. I reported the sale last year.

Yes we claimed the whole sale even though we didn't receive all the proceeds. We did elect out of the installment payments. We have other rental properties in the LLC.
Rick19744
Level 12

Where on the 1065 to I report interest paid to LLC financed mortage. I reported the sale last year.

The LLC holds the note?
*A reminder that posts in a forum such as this do not constitute tax advice.*
taxes0631
Returning Member

Where on the 1065 to I report interest paid to LLC financed mortage. I reported the sale last year.

Yes, we did the sale through an attorney. It was a mobile home not a house. The sale was only for 20 something so we claimed the whole thing in one year.
Rick19744
Level 12

Where on the 1065 to I report interest paid to LLC financed mortage. I reported the sale last year.

Based on the facts, the interest income should be reflected on Sch K line 5 and also on Sch K-1 line 5 for each member of the LLC.   This is just portfolio interest since earning interest is not the main activity of the LLC (ie lending institution).

I assume you have an amortization schedule that will provide you with the information you need based on payments received.

The principal of the note will be reflected on your balance sheet as an asset.

*A reminder that posts in a forum such as this do not constitute tax advice.*
taxes0631
Returning Member

Where on the 1065 to I report interest paid to LLC financed mortage. I reported the sale last year.

Thanks
taxes0631
Returning Member

Where on the 1065 to I report interest paid to LLC financed mortage. I reported the sale last year.

Where do I enter the interest amount so it shows up on line 5?
Rick19744
Level 12

Where on the 1065 to I report interest paid to LLC financed mortage. I reported the sale last year.

I am on an IOS platform and the TT Business software is Windows only.  As a result I can't tell you specifically where to input it.  However, I would imagine there is a search function, help function that should provide assistance.
*A reminder that posts in a forum such as this do not constitute tax advice.*
taxes0631
Returning Member

Where on the 1065 to I report interest paid to LLC financed mortage. I reported the sale last year.

Thanks, I hate to keep bothering you. This is just so annoying to me. It's the only part I just don't seem to get!
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