We had vacant land for sale, went under contract, the buyer backed out and we received the deposit. Do we report that income, and if so, how?

We did not sell the property and still own it.

1 Best answer

Expert Alumni

Apr 18, 2023 5:04:54 AM

I would advise that you report this amount as Other Reportable income and describe it as Deposit forfeited by buyer.

In TurboTax, open your return and follow these steps:

Click on Federal in the left-hand column, then on Wages and Income
Continue and locate the Less Common Income section
Click Show more and click Start next to Miscellaneous Income at the bottom
On the next page, click Start next to Other Reportable Income.

Expert Alumni

Apr 18, 2023 5:04:54 AM

I would advise that you report this amount as Other Reportable income and describe it as Deposit forfeited by buyer.

In TurboTax, open your return and follow these steps:

Click on Federal in the left-hand column, then on Wages and Income
Continue and locate the Less Common Income section
Click Show more and click Start next to Miscellaneous Income at the bottom
On the next page, click Start next to Other Reportable Income.