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@ST51 wrote:
Also $1000 deposit is not near the 5% purchase price, a safe limit set by IRS. Now, how can I be sure IRS....
In that event, how is it that you did not answer your own question in light of the language in the IRS tax topic you cited?:
For example, if a customer has made a non-refundable deposit or down payment of 5 percent of the total contract price, it is an indication of a binding contract.
There are a plethora of ambiguities in the Code and Regs (not to mention IRS interpretations via Revenue Rulings, et al) so you really cannot be sure the IRS will treat anything that is ambiguous in your favor.
@ST51 wrote:
Also $1000 deposit is not near the 5% purchase price, a safe limit set by IRS. Now, how can I be sure IRS....
In that event, how is it that you did not answer your own question in light of the language in the IRS tax topic you cited?:
For example, if a customer has made a non-refundable deposit or down payment of 5 percent of the total contract price, it is an indication of a binding contract.
There are a plethora of ambiguities in the Code and Regs (not to mention IRS interpretations via Revenue Rulings, et al) so you really cannot be sure the IRS will treat anything that is ambiguous in your favor.
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