I posted previously about an installment sale on shareholder stock. The interest received by the seller needs to be reported on Schedule B as income. I am just wondering if the approriate place would be the under Seller Fiananced Mortgages?
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Mortgage interest income
I would say no. Mortgage sounds like a note on real property. -
That is what I thought. It didn't seem right to put it there. So I guess just list the new shareholders names on the schedule B with the other interest from banks.Comment
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List on Sched. B
I would think so. Will you need to include their Soc. Sec. No.Comment
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Installment Sale of Stock
I would say, NO. You do not report EIN's for the financial institutions.
Another point however not raised. Why would you not report amounts paid on the principal of these sales on 6252 and then Sch D? Of course interest paid for the year would be recorded on Sch B. I would not include SSN of payer on Sch B.Comment
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Chief-Misunderstood
Maybe I misunderstood the original post. Thought she was asking about reporting just
the interest received from installment sale of stock.
You are right in that the principal payments would be reported on the 6252 then carried
to Sched. D.
Normally the IRS wants the Soc. Sec. No. of the payor so that info can be cross checked.
Since usually no 1099s are issued.
The IRS has that info re. interest paid by financial institutions because they do issue
1099s.Comment
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Yes I was wanting to know where to put the interest income on Schedule B from the sale of stock listed on 6251 Installment. The principal payments are carrying foward to Schedule D. I just wasn't sure how to list the interest since it isn't a sale of real property (mortgage).
I would think their social security numbers would need to be listed. For tracking purposes, but I don't feel confortable listing them on a worksheet like that.Comment
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