[{"data":1,"prerenderedAt":7},["ShallowReactive",2],{"faq-standard-3028":3},{"rec_id":4,"title":5,"text":6},"3028","Seller-Financed Loans Interest Income","Menu Path: \u003Ci>Income > Uncommon Income > Seller-Financed Loan Interest\u003C/i>\r\n\u003Cbr>or\u003Cbr>\r\nMenu Path: \u003Ci>Income > Uncommon Income > Installment Sale\u003C/i>\r\n\u003Cbr>\u003Cbr>\r\nSeller-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.\r\n\u003Cbr>\u003Cbr>\r\nIf the interest you received was not part of an \u003Ca href=\"/freefile2025/answers?faq=8309\">installment sale\u003C/a>, you should enter your interest income on the \u003Ci>Your Seller-Financed Loan Interest Income\u003C/i> screen.\r\n\u003Cbr>\u003Cbr>\r\nA sale isn't an installment sale if any of the following are true:\r\n\u003Cul>\r\n\u003Cli>The sale doesn't result in a gain, or the entire gain was \u003Ca href=\"/freefile2025/answers?faq=8602\">excluded\u003C/a>.\u003C/li>\r\n\u003Cli>All of the payments were received in the same year.\u003C/li>\r\n\u003Cli>You choose to not report the sale as an installment sale.\u003C/li>\r\n\u003C/ul>\r\nIf you receive more than one payment in more than one year as part of an installment sale, you'd enter it on the \u003Ci>Your Installment Sales\u003C/i> screen. We'll ask you about the interest income there.",1777391508545]