How do you reduce you Interest Income from a contract for deed?
I am trying to figure out if there is a way to reduce my interest income that is associated with a contract for deed I have in place. In the contract for deed, I am receiving a monthly payment that is equal to what I have to pay my mortgage company (Wrap-around mortgage), so I make nothing on it. Because the yearly mortgage interest is $6k*, I'm losing $5K in Earned income credit. Is there a way for me to reduce my interest income on my tax return?
*The interest income threshold for EIC $3100.
As one who has return back to school, I could sure use the additional $5k.
Any help would be appreciated.