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June 4, 2019
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I sent a 1098 to the person purchasing a home from me for the interest he paid me and the balance of the loan. Where in Turbo Tax do I report that information for my taxe

  • June 4, 2019
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Best answer by MichaelDC

When you report interest income received from a buyer who uses the property as a personal residence, write the buyer's name, address, and social security number (SSN) on line 1 of Schedule B (Form 1040A or 1040), Interest and Ordinary Dividends.   When deducting the mortgage interest, the buyer must write your name, address, and SSN on line 11 of Schedule A (Form 1040), Itemized Deductions.   If either person fails to include the other person's SSN, a penalty will be assessed. 

Here's how to include the interest portion of the mortgage payments:

    ·         Select Federal Taxes, Wages & Income, I'll Choose What I Work On

    ·         Scroll down and select Interest on 1099-INT

    ·         If you see it select Add Interest Income, otherwise just select I'll Type it Myself

    ·         Now just fill in the information. Regular interest income just gets reported in Box 1.

     



      1 reply

      MichaelDCAnswer
      Employee
      June 4, 2019

      When you report interest income received from a buyer who uses the property as a personal residence, write the buyer's name, address, and social security number (SSN) on line 1 of Schedule B (Form 1040A or 1040), Interest and Ordinary Dividends.   When deducting the mortgage interest, the buyer must write your name, address, and SSN on line 11 of Schedule A (Form 1040), Itemized Deductions.   If either person fails to include the other person's SSN, a penalty will be assessed. 

      Here's how to include the interest portion of the mortgage payments:

        ·         Select Federal Taxes, Wages & Income, I'll Choose What I Work On

        ·         Scroll down and select Interest on 1099-INT

        ·         If you see it select Add Interest Income, otherwise just select I'll Type it Myself

        ·         Now just fill in the information. Regular interest income just gets reported in Box 1.