How to handle Car Loan Interest paid to me by my daughter

[SteveO-59]

I loaned money to my daughter to buy a new car this year.  We agreed to the going rate at the time (2.5%), and I have kept records showing principle and interest payments to date.  Does she, or do I, have to create a 1099 for this, or do either of us have to send any paperwork to the IRS?  Once that question is settled, where do I claim in the interest in Turbotax?

[NCperson]

@SteveO-59 - no paper work required to send to the IRS; however, you have income to report (the interest).  it's simply 'Miscellaneuos income'.

[Hal_Al · Accepted solution]

You can report it as interest. You can enter it at the 1099-INT screen, even though there was no actual form 1099-INT issued by anyone.   

It is also OK to report it as Misc. income.  But, for some people, they may require a TT upgrade.