Question

Interest Income adjustment

Forum|Forum|4 years ago
April 6, 2022
1 reply
0 views

I have seller financed the sale of our house. I am using PayPal to invoice the new owner monthly. He pays the invoice through his PayPal account and PayPal deducts their 2.9% fee before transferring the remainder to my PayPal account. I credit him with full payments on his interest and principle due and enter a $80 or so bank charge on my books.

Question: Can I deduct the PayPal fee from the interest income earned on my self financing?

AmyC

Employee

No, the seller paid the full amount and will claim the full amount. You must claim the full interest earned. Your choice to pay fees is not relevant. The seller could have written you a check, deposited to your bank account, handed you the money, etc.

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