I have always followed the rule that interest received is taxed by the taxpayer's home state. However this one is giving me a headache. Taxpayer's inherited an installment sale of farm ground in a different state. I have all of the information needed to file the 6252, no problem there. However the buyer (who is out of state) issued them a 1099int for the interest portion and since that is a part of the installment sale income should it go on the non-resident state return with the principle portion or is it income to the home state. Thanks for any advice, I need to get this finished off and out the door.
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