Where do I report interest income from my daughter, for whom I am financing a house? This was not my home so it is not exactly seller-financed.

[IsabellaG · Accepted solution]

You can report this interest as if you received a 1099-INT. Just enter your daughter's name, and the amount of interest you received. Since this is not a mortgage, she can't deduct this interest.

[712banner]

Actually, this is an second mortgage on her house, with me as the lender

[IsabellaG]

Well, if this is an actual mortgage, it must be secured by the home,which means that you have a lien on the property,  as opposed to a personal loan. In that case, report it as if it was a seller-financed mortgage and include the information about your daughter.

[712banner]

Thank  you.

[IsabellaG]

You're welcome!