Hi have a 2024 real estate contract as Seller where buyer released non-refundable Earnest Money now, and agreed to pay monthly market rent until a specified date in 2025 where the property purchase will close.
Is the released earnest money taxable for 2024 income? Or is it just part of the future transaction that will close in 2025?
Is the 4 months pre-closing rental income taxable, or is it just part of the contract which closes in 2025?
Is deducting selling expenses that are part of the contract, but were paid in 2024, deferred until 2025 taxes since that's when contract closes?
