I sold land & a portion of the proceeds were placed in escrow, to be released after one year. How do I account for the sale & escrow amount on the tax return?

[dbarn72]

The amount was placed in escrow to cover a potential law suit (which did not occur).  I received the funds from escrow in early 2021.  The amount in escrow is material - it is 10% of the selling price. 

[JotikaT2]

You will enter this information into TurboTax in the federal interview section as follows:

1. Select Income & Expenses 
2. Scroll down through all income until you see Investment income 
3. Select Stocks, Mutual Funds, Bonds, Other 
4. Select Add more sales 
5. You will see the screen titled OK, what type of investments did you sell?  Be sure to select Other to report your 1099-S.

Proceed through the questions and enter the information as prompted.  

[Critter-3]

The amount held in the escrow is immaterial to the sale ... you must report the entire sale amount in 2020 and the release of the escrow in 2021 will not be reported at all.  

[dbarn72]

The amount in escrow IS material.  It is equal to 10% of the selling price of the property so why would I report the entire amount as the selling price if I do not have access to the funds?

[dbarn72]

The amount in escrow IS material.  It is equal to 10% of the selling price of the property so why would I report the entire amount as the selling price if I do not have access to the funds?