Where do I enter the income from a owner finaced mortgage?

[eremartin1]

I have already entered the interest we collected but it always says not to enter income from the loan there that it will be asked for later.  Last year it took me almost a month to find out where to put it and I can't find it again this year. I don't want to spend forever looking for it again.  Can someone direct me to where it is?

Second what do I do if I won a product at a show, simply attending was the entry and I won because of the seat I was in.  I had to fill out a W2 form to receive the item but I have not received any 1099 or WG form from them what do I do concerning that?  Where would I enter that informtion?  Do I even need to enter it, how do I determine the value of the item if it was used as a demo model at the show?

Thanks in advance.

[DoninGA]

To report interest from a seller-financed mortgage -

Click on Federal Taxes (Personal using Home & Business)

Click on Wages & Income (Personal Income using Home & Business(

Click on I'll choose what I work on

Under Interest and Dividends

On Interest from Seller-Financed Loans, click the start button

[eremartin1]

That I know and have already done. I am talking about the money that came in via the payments and are the principal on the loan,  Not the intrest.

[DoninGA · Accepted solution]

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@eremartin1 wrote:

That I know and have already done. I am talking about the money that came in via the payments and are the principal on the loan,  Not the intrest.

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When the home was sold you should have reported it as an installment sale on Form 6252

IRS Tax Topic on installment sales - https://www.irs.gov/taxtopics/tc705

IRS Publication 537, Installment Sales - https://www.irs.gov/pub/irs-pdf/p537.pdf

To report an installment sale -

Click on Federal Taxes (Personal using Home & Business)

Click on Wages & Income (Personal Income using Home & Business)

Click on I'll choose what I work on

Scroll down to Less Common Income

On Installment Sales. click on the start button

[eremartin1]

Ok found it now comes the next question and I am totally confused by it.

I entered the interest earned as Morgage Interest under the Interest and Dividens area and the Installment Loan entry area also asks for Installment Interest.  When I enter the same interest information under the Installment it rasises my tax bill by $2000+.  Am I correct in my reading of Publication 537 that Mortgage Interest is for short term loan interest data entry while the Installment loan interest entry area is for multi year loan interest?  When I enter the interest information into one area or the other only my tax bill stays the same.  It only increases when in both areas and I dont want a blank line for interest under Installment loan.

Hope that was clean and not as confusing as I amm right now.

[DoninGA]

@eremartin1 You entered the interest received in the section for Seller-Financed Mortgage and the same interest in the installment sales section.  Since this is an installment sale which will be spanning several years the interest reported on the Form 6252 is the correct place for that interest.

You need to remove the interest reported in the Seller-Financed Mortgage section.