Where do I enter income from forfeited deposit on sale of rental property?

[realware]

We have been doing short-term rentals on a property for 6 years and attempted to sell it last year.  The buyer did not close on the contract and forfeited his deposit.  I know this is considered ordinary income but I don't know where to enter it.  I would prefer to enter it on Schedule E to offset the overall loss we have on the property.

If the forfeited deposit is not entered on Schedule E, where do I enter the expenses we had associated with the failed sale?

[Critter]

go ahead and add it to the Sch E income.