KrisD15
Expert Alumni

Deductions & credits

The income is recognized in 2022 when the service (house) is delivered. 

 

It isn't income when the seller/builder still owe him a house or alterations. 

The funds received are offset by the liability the Builder has to return the deposit if the Builder does not provide the house. 

Once the house is delivered, the builder has the right to claim the down payment as his and it is then recognized as income. 

 

 

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