Seller-Financed Interest allows for the buyer of a home to finance the purchase through the homeowner (seller). The buyer will then make payments directly to you (the seller) rather than to a bank unlike traditional mortgages.
Where do I report Seller-Financed Interest in the program?
- Select "Federal" from the left side menu
- Select "Income" from the left side menu
- Click select my forms and click "continue"
- Select Begin on "1099-INT, DIV, OID
- Click "Begin" on the first option, "Did you earn any interest or dividend income from a bank, brokerage firm or some other financial institution?"
- Select the last option "Seller Financed Interest Income"
For more information about Seller-Financed Interest, please see the IRS publication here.