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Interest received on a personal loan is taxable and reportable on your tax return.
You enter this interest as if you have received a form 1099-INT.
In TurboTax, you can enter interest received by following these steps:
Would it be the same for interest received on a private/personal loan backed by property in another state? It's technically interest on a promissory note, not a mortgage. I will be adding the interest as income to my Federal and home state returns, but would I have to also file a return in the other state as well?
No, you do not need to file a return to report the interest income to the other state.
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