Seller-financed mortgage interest

Forum|Forum|6 years ago
March 10, 2020
3 replies
19 views

The Seller-financed mortgage interest statement in ProSeries 2019 estate tax return does not have a place to put the mortgage interest received. Where do I put the mortgage interest? The only place to put total interest is on the Interest and Dividend worksheet this year next to "See Seller-Financed mortgage interest statement". Can anyone help me?

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Just-Lisa-Now-

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qbteachmt

Level 15

Alrighty, let me try:

"Seller-financed" is the part where you are reporting the info to the IRS about the party you pay or pays you.

"An estate or trust claiming an interest deduction for qualified residence interest (as defined in section 163(h)(3)) on seller-provided financing must include on an attachment to the 2019 Form 1041 the name, address, and TIN of the person to whom the interest was paid or accrued (that is, the seller).

If the estate or trust received or accrued such interest, it must provide identical information on the person liable for such interest (that is, the buyer). This information doesn't need to be reported if it duplicates information already reported on Form 1098."

The income is Income:

"Line 1—Interest Income

Report the estate's or trust's share of all taxable interest income that was received during the tax year. Examples of taxable interest include interest from:

Accounts (including certificates of deposit and money market accounts) with banks, credit unions, and thrift institutions;
Notes, loans, and mortgages;
U.S. Treasury bills, notes, and bonds;
U.S. savings bonds;
Original issue discount; and
Income received as a regular interest holder of a real estate mortgage investment conduit (REMIC)."

Hope that helps.

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S

smherndonAuthor

Level 2

Thank you for trying to help me.

My question was unclear. Every year prior to this one (2019) I was able to enter the total amount of interest per payer directly on the Seller-financed mortgage interest statement. This year there is no place to enter the amount of interest on this statement. It only has spaces for payer's names, addresses and SSN or EIN.

In the past the grand total of all mortgage interest flowed from the Seller-financed mortgage interest statement to "Line 1-Interest Income" on the Interest and Dividend worksheet.

Not all interest received had to be reported to the IRS on Form 1098 - Mortgage Interest, i.e., less than $600 or payer was not an individual, so my total will be more than reported to IRS.

I guess I will create a supporting statement for Line 1-Interest Income and put the grand total of mortgage interest received there as suggested by ProSeries tech support. I don't see any other way to report it.

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