Home sale with lease agreement

Hello, we sold our house in 2024 but the buyer moved in before closing and “rented” until closing ( long story but it took 9 months for him to close) so now we have 40k of money to report on taxes. Is this money treated as rental income or as part of the home sale price for tax purposes?

posted

Yes. The money would be treated as rental income even if your intent was not to rent the house. This money would typically be treated as rental income for tax purposes, since the buyer was effectively renting the property before the sale was finalized.

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