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.
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