"Harlan Lunsford" <hnslunsford[at]bellsouth.net> wrote in message
news:qosuj.91752$_m.31057[at]bignews4.bellsouth.net...
- quote -

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).

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Jonathan Stafford wrote:
- quote -


ChEAr$,
Harlan Lunsford, EA n LA

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

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

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >