Hello PatriciaV,
Thank you for responding to my question. We were hesitant to place this interest income received on the note as other income as you suggest because it ends up being reported on Schedule K as Self-Employment Income which causes us all kind of issues on our personal taxes. Also, I agree with your note [Note that according to IRS Tax Topic 705 - Installment Sales, "You generally report interest on an installment sale as ordinary income in the same manner as any other interest income."], thus coming to the conclusion to report this income received on the note in Line 5 of Form 1065 Schedule K, Interest Income, as this is where we report other interest income that we received.
