Had default home purchase contract which gave me $25000. Home is held in LLC. On what form or itemized income would that be?

[skyhawk13douglas]

Selling a home in Scottsdale AZ that is in  business that rented the property. Buyer defaulted and never closed and we were allowed to keep their escrow deposit which was $25000. How do I claim this income? It is an S corp that we take all income and deductions personally  

[LeeM · Accepted solution]

I would claim it as miscellaneous income. As long as you claim the income, you should be fine. The categorization should not affect your tax liability.