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L
lisazpiecez
February 2, 2024
Question

Seller Financed loan interest

  • February 2, 2024
  • 1 reply
  • 0 views

Hi there!

I sold my mobile home via seller financing/installment payments in 2023.  The buyer, who is a friend, says I don't have to pay taxes on interest received if I provide a 1099 to her.  I don't think this is correct? Thoughts?

1 reply

DoninGA
DoninGA
Employee
February 2, 2024

No, that is not correct.  You have to report the interest received on a seller-financed loan as income on your tax return.

 

Click on Federal on the left side of the online program screen

Click on Wages & income

Scroll down to Less Common Investments and Savings

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

L
lisazpiecezAuthor
February 2, 2024

Ok, that sounds right.  When I plugged it into Turbo Tax, since I used a small portion of the mobile for my home office, it placed the interest income into my business.  Does that change anything?

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