My wife and I have a real estate partnership LLC and we file form 1065. We sold some real estate in an installment sale and have received interest payments from the buyer on the seller financed note that we are now holding. We are trying to figure out where we report this interest income on the Form 1065. Our current "guess" right now is to report it on line 5 (interest income) on Schedule K. Can anyone confirm this or advise on another way of reporting the income? We are using TurboTax for Business on our PC. The installment sale form (6252) was created correctly through the TurboTax Step by Step method but at no time did the Step-by-Step method ask us about interest received and a review of Form 6252 along with the accompanied form instructions seem to clearly indicate that interest received is not entered anywhere on the Form 6252.
