How does a private lender report their income for tax purposes?

[Lana Forbes]

Hi BP members.  

As a private lender, how do you report the profit you make for tax purpose?

For example, I loan 50k and after 3 months I get back 58.5k in return (50k loan, 5 points = 2500 and 12% interest = 6000).  

How do I report the 8500 as income? Is there any tax  form to fill out?  

Does the title company report the amount to the IRS? 

This is my first time as a private lender, I want to make sure I don't miss any thing.  

All comments and adviseven are greatly appreciated.  

Thanks,

Lana