Make sure you enter the related income from any seller financed mortgages.
Report the interest portion of the payment as ordinary income on Form 1040 or 1040-SR, line 2b, or Schedule NEC (Form 1040-NR) if a nonresident alien.
During the Real Estate interview you need to answer yes if a 1099 was required to be reported if the amount is greater than $600. Then you are required to file a 1099-int for the interest paid to seller if they are not a business.
You then would have the interest income reported on your Schedule B.
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