Seller-financed mortgage interest (1040)

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This article covers the data entry for seller-financed mortgage interest to be reported on Schedule B.

  1. Open the Income folder.
  2. Click the B&D screen.
  3. Open the Seller-financed mortgage interest income statement and complete these fields:
    • F/S:If the interest is federal-only or state-only, code it as federal or state. If the interest should be reported on both federal and state, leave this field blank. If there are multiple states on the return, see Entering interest and dividend income for a multi-state return.
    • TSJ: Code the interest to the Taxpayer, the Spouse, or as Joint. This field does not exist if you come from the Broker screen because the entire Broker screen is coded to the Taxpayer, Spouse, or Joint and the Interest income statement automatically picks up the code from there.
    • Payer's Name: Enter the payer name.
    • Street Address, City, State, Zip Code: Use all these fields to enter the payer’s address.
    • SSN: Enter the payer’s Social Security number.
    • Amount:Enter the interest amount.
    • State: If the return has more than one state, enter the state the interest is for. See Entering interest and dividend income for a multi-state return for details.
    • In-State Source %: Enter the percent of the interest that is state-source. Only use this field if there are part-year or nonresident states attached to the return. See Entering interest and dividend income for a multi-state return for details.
  4. If you skipped fields during these steps, fill them in as needed or to get the desired result on Schedule B.

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