Per IRS Publication 550 Investment
Income Interest on seller-financed mortgage. If
an individual buys his or her home from you in a sale that you finance, you must report the amount of
interest received on Schedule B (Form 1040A or 1040), line 1. Include on line 1
the buyer's name, address, and SSN. If
you do not, you may have to pay a $50 penalty. The buyer may have to pay a $50
penalty if he or she does not give you this information.
You must also give your name, address, and SSN (or employer
identification number) to the buyer. If you do not, you may have to pay a $50
penalty.
To enter seller financed interest income:
·
Type interest
income - seller financed and
click search/find.
·
Click on Jump
to interest income - seller financed.
·
Continue with the onscreen questions.
