ErnieS0
Expert Alumni

Deductions & credits

Yes. A forfeited deposit is income to you. The would be buyer paid you for the right not to sell the property to anyone else for a specified period of time.

 

Report this as Other Income.

 

  1. Click Federal in the left column
  2. Click Wages & Income 
  3. Scroll down to Less Common Income. Tap Show more
  4. Select Miscellaneous Income, 1099-A, 1099-C
  5. Select Other reportable income
  6. Say Yes to Any Other Taxable Income?
  7. Enter a description (forfeited earnest money) and amount ($xxx) 
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post