Interest income is reported on your return as follows assuming this is a sale where you the seller finance a junior mortgage.
-
The seller extends to the buyer a junior mortgage which wraps around and exists in addition to any superior mortgages already secured by the property
- While you
are logged into your TurboTax Premier account:
- Federal Taxes tab
- Select Wages & Income
- Select I'll choose what I work on
- Scroll to Interest Income
- Select Interest from seller financed loans
- Continue to enter
the information -Name, address and social security number of the buyer
- Click the
screenshot attached to enlarge and view for assistance.
When you hold a note between you and the buyer interest income is reported regardless of gain or loss on the sale.
