My Father's Estate - Forfeited Real Estate Deposit Received

[karlatwanna]

I am the executrix of my father's estate.  Do I need to report a forfeited real estate deposit the estate received for my father's personal residence?

If so, which tax year do I report it on?  The deposit was received in December 2023 but the house was sold in 2024. 

[Mike9241]

Sorry for your loss. it's a nontaxable deposit until the date it became forfeited.  That date determines what year to report it and whether to report it on his 1040 if your father was alive or the estate if he was deceased.

[karlatwanna]

Thank you!