dbarn72
Returning Member

I sold land & a portion of the proceeds were placed in escrow, to be released after one year. How do I account for the sale & escrow amount on the tax return?

The amount was placed in escrow to cover a potential law suit (which did not occur).  I received the funds from escrow in early 2021.  The amount in escrow is material - it is 10% of the selling price.