Under what category is this income reported as?
Is it “rental Income and on a Schedule E”?
Im not too sure how to report this.
Ramiro - Not real clear on the exact question. If you sold property and carried paper that bears an interest rate, the interest you receive is taxable as interest income on Schedule B. Any gain on the sale would be reported on Schedule D. Principal received should be tax free unless the sale was treated as an installment sale. Then the gain portion of the principal payment would be reported as capital gain on Schedule D.
If you bought a property with seller financing, your interest payment would be reported on Schedule E.
Clear as mud?