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HERE is a link to a thread with a similar question.
If the rental is not treated as a business, you can report the interest as personal interest.
If you want to have the rental claim the interest, it is suggested that you make a double entry, enter Form 1099-INT, back-out the income and enter again as rental income.
The issue is that the IRS will want to match Form 1099-INT and entering it as personal interest makes the entry obvious.
HERE is a link to a thread with a similar question.
If the rental is not treated as a business, you can report the interest as personal interest.
If you want to have the rental claim the interest, it is suggested that you make a double entry, enter Form 1099-INT, back-out the income and enter again as rental income.
The issue is that the IRS will want to match Form 1099-INT and entering it as personal interest makes the entry obvious.
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