Q&A: Reporting interest paid on “seller carryback loans” to IRS?
Question by insurancelawcase: Reporting interest paid on “seller carryback loans” to IRS?
I found a property where owner is willing to finance the deal by caring a note “seller carryback” which is fine. But come end of the year how should I report to the IRS that I paid interest on the payments…since normal mortgage companies send you year-end statement indicating total interest paid?
Obviously I could mannually calculate total interest paid and report on my taxes…but I wonder if it’ll set off alarms with IRS?
I appreciate any feedback. Thank you.
Answer by Derrick
You should report this to the IRS, it will not set off any flags.
What do you think? Answer below!