I will have interest income from a family loan (5 years) and the total interest will be under $800 a year using a 3% rate of interest. Should the interest income be reported on line 8a or line 21?
If line 8a, I will also have Schedule B interest from a broker on line 8a so do I add the amount from the broker and the amount from the family loan and enter the total on 8A? It would seem better to enter the interest from the loan on line 21.
Line 8a.
If you use Schedule B for some interest, you must do so for all interest. If you are not required to use Schedule B, you may place the total on line 8a.
-- Arthur Rubin CRTP, AFSP in Brea, CA
Thank you. I will add another line on Schedule B to handle it.
Good idea to keep good records on who is paying it and yearly interest in case the person tries to deduct it and then IRS contacts you, etc. Longshot but nice to have.
BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.