How to report rental property's escrow interest?

My wife and I bought a house a few years ago before we were deployed. Now we're renting it. Part of our mortgage payments covers property taxes, and the mortgage company pays us interest on the money held in escrow. Where should that interest payment be reported? They sent us a 1099, but I don't know if it should go on Schedule B or if its hidden in some line of Schedule E (12 maybe)?

Thanks, jonathan

Reply to
Jonathan Stafford
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schedule b

ChEAr$, Harlan Lunsford, EA n LA

Reply to
Harlan Lunsford

I agree, but note that it is still PASSIVE income that may be used to offset passive losses.

If the interest income were not connected to the rental property, it wouldn't be passive (in your case).

Reply to
D. Stussy

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