Thank you for this explanation. If I don’t report $20,000 in earnest money to the IRS in the year received which was 2024, with the intention of waiting to report it when the property closes in 2025, do I need to explain the $20K earnest money that was deposited into my bank account in 2024 to the IRS in some fashion? if so, how do I do that if I’m not reporting the earnest money on my 2024 return? It‘s my understanding that banks must report deposits of $10000 or more to the “feds.” Whoever the “feds” are in this case and is this a concern?
thank you
