In 2015 I sold my primary residence on a CD and he put my interest received from the buyer under Interest and ordinary dividends. He put the interest I paid on this property (to my mortgage company) in the "Home Mortgage Interest and Points on Form 1098."
My question is... Is this correct? I'm wondering if this should should have be placed on Form 6252 instead. Any advice on this would be appreciated!
Sure hope it is correct because that's exactly what we have done. :)
There is a little more than hope - e.g., see the instructions for Form 6252 (
https://www.irs.gov/pub/irs-prior/i6252--1992.pdf):
"If any part of an installment payment you
received is for interest, be sure to report
that interest on the appropriate form or
schedule. Do not report interest received,
carrying charges received, or unstated
interest on this form."
From your OP it appears you do not have to declare any capital gain on the sale, correct? If you did, that is where 6252 would come in.
If you were able to exclude capital gains due to the $250K (or $500K if MFJ) exclusion, then all you have to report are the yearly interest payments. Those do indeed go on Schedule B.
Your home mortgage interest paid should end up on Schedule A, as part of your itemized deductions (important only if you have enough to itemize).
