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March 30, 2025
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Where do I enter the income from a owner finaced mortgage?

  • March 30, 2025
  • 1 reply
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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.

Best answer by DoninGA

@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.


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

1 reply

DoninGA
Employee
March 30, 2025

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

March 30, 2025

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
DoninGAAnswer
Employee
March 30, 2025

@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.


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