interest income of a sole proprietorship does not go on schedule C. it retains its character as interest income and should be reported that way. otherwise, when the IRS gets your return and looks to see if that 1099-INT was reported it won't find it and then you will get a notice. also why pay SE Tax on it and it does not qualify for the QBI, 199A deduction. This is exactly how interest income earned by a partnership or S-Corp is reported to the owners. it's on a separate line of the K-1 and flows to the interest income section of schedule B.
