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Should I use Seller Financed Loan for interest received from someone who we loaned money to, to buy a house? We never owned this house. We loaned them the money to buy it
This is a 10 year loan. We never lived in the house - just loaned them the money so they could buy it.
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June 6, 2019
8:23 AM
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Deductions & credits
You have a "seller-financed mortgage" if you sell your home and you accept a trust deed or other repayment promise as part of the payment. The interest the buyer pays you is seller-financed mortgage interest income.
Enter the amount of interest received into TurboTax as if you received a 1099-INT under the "Personal Income" tab. Enter the name of the party that the interest was received from in the "Received from" field, and the dollar amount of the interest in the "Box 1 - Interest Income" field.
This will correctly report the interest income on your Schedule B.
June 6, 2019
8:23 AM
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Deductions & credits
We did not sell our home. This is a Personal Loan we are offering to someone else. We are using a mortgage amortization to calculate the interest. It seems we should use the second reply from Turbo Tax, from macuser_22 on Personal Loans - <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/3659697-entering-interest-received-from-a-personal-loan">https://t... you for your answer.
June 6, 2019
8:23 AM