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We received a deposit on the selling of our house in 2024. The deposit is non refundable. If the house does not sell, what is the tax rate of the deposit received?

 
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3 Replies

We received a deposit on the selling of our house in 2024. The deposit is non refundable. If the house does not sell, what is the tax rate of the deposit received?

Report as other income. 

We received a deposit on the selling of our house in 2024. The deposit is non refundable. If the house does not sell, what is the tax rate of the deposit received?

if this was an escrow deposit for a sale that was scheduled to close in 2025 but fails. I wouldn't report it as income until 2025

TomD8
Level 15

We received a deposit on the selling of our house in 2024. The deposit is non refundable. If the house does not sell, what is the tax rate of the deposit received?

The tax rate you pay will depend on your total taxable income, which would include any forfeited deposit.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
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