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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.
- Click Federal in the left column
- Click Wages & Income
- Scroll down to Less Common Income. Tap Show more
- Select Miscellaneous Income, 1099-A, 1099-C
- Select Other reportable income
- Say Yes to Any Other Taxable Income?
- Enter a description (forfeited earnest money) and amount ($xxx)
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‎April 15, 2023
5:50 PM