Seller-Financed Loans Interest Income

Menu Path: Income > Uncommon Income > Seller-Financed Loan Interest
or
Menu Path: Income > Uncommon Income > Installment Sale

Seller-financed interest income only applies if you sold your home and provided the buyer financing instead of the buyer getting a home loan through a bank. So, if the buyer pays their mortgage payments directly to you, then you have seller-financed interest income.

If the interest you received was not part of an installment sale, you should enter your interest income on the Your Seller-Financed Loan Interest Income screen.

A sale isn't an installment sale if any of the following are true:

• The sale doesn't result in a gain, or the entire gain was excluded.
• All of the payments were received in the same year.
• You choose to not report the sale as an installment sale.

If you receive more than one payment in more than one year as part of an installment sale, you'd enter it on the Your Installment Sales screen. We'll ask you about the interest income there.