I carry a mortgage on a house I sold. Are the interest payments I receive considered income? If so, where do I put that in Turbo Tax?

matuz1806 · ‎February 25, 2021

I'm the bank in this situation and collect the principal and interest for the mortgage. Is the interest portion of the payment I receive considered income?

DavidD66 · ‎February 25, 2021

Yes it is taxable interest income and needs to be reported on your tax return. To report the interest income in TurboTax Online, while logged in to your return:

Click on Federal
Click on Income & Expenses
Scroll down to Interest and Dividends
Next to Interest from Seller-Financed Loans Click on Start
Answer Yes to Any Seller-Financed Loans?
Complete the information for the seller-financed interest you received.

You are also required to file a Form 1098 and report the amount of interest paid to the IRS and the borrower.

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**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

DavidD66 · ‎February 25, 2021

Yes it is taxable interest income and needs to be reported on your tax return. To report the interest income in TurboTax Online, while logged in to your return:

Click on Federal
Click on Income & Expenses
Scroll down to Interest and Dividends
Next to Interest from Seller-Financed Loans Click on Start
Answer Yes to Any Seller-Financed Loans?
Complete the information for the seller-financed interest you received.

You are also required to file a Form 1098 and report the amount of interest paid to the IRS and the borrower.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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I carry a mortgage on a house I sold. Are the interest payments I receive considered income? If so, where do I put that in Turbo Tax?