Where do I enter earned interest on my escrow account for a rental property mortgage?

Forum|Forum|6 years ago
June 6, 2019
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TurboTax Premier Windows

Best answer by BobinCT

Just like interest income on a savings account. Enter it as though it was on a regular 1099-INT

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BobinCTAnswer

Just like interest income on a savings account. Enter it as though it was on a regular 1099-INT

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Jerry Lantzy

The application of 1009-Int from the deposits held in escrow accounts for the payment of Property taxes and Insurance is further complicated when a property partnership/ownership interest is present and TT is used to automatically split revenues and expenses by entering the property ownership percentage. In this circumstance, would it be better to have the partner whose "Recipient's TIN" (SS#) is on the 1099 report the Interest, rather than the possibility raising additional questions by splitting/submitting partial 1099-Ints under ordinary income?

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ThomasM125

It may be easier to have the partner enter the interest income on his or her personal tax return. However, you are not supposed to enter income that doesn't belong to you on your tax return. In some instances an increase in income can actually lower your tax, as can happen with an earned income credit is some circumstances. It can have unintended consequences. It would be better from a compliance standpoint to allocate the income to each partner as is required by the tax regulations. @Jerry Lantzy

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