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March 15, 2021
Question

I loaned money to my daughter to purchase her home. Where do I enter the monthly payments I receive from my daughter in payment for this loan.?

  • March 15, 2021
  • 1 reply
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I, in effect, am the bank and hold the mortgage.  She makes interest only payments.

1 reply

March 15, 2021

You can report the interest you received in the way like if you would received Form 1099. You will need to calculate interest payment for the year and enter it follow these steps:

  1. Sign in to TurboTax 
  2. Click on Federal Taxes tab.
  3. Click on Wages and Income tab.
  4. Scroll down to Interest and Dividends (Show More)
  5. Click on the Start/Update button (next to Interest on 1099-INT) and follow the Interview questions. to enter your information.

You can learn more about interest income here:

 

Filing Tax Form 1099-INT: Interest Income