This was a forfeited deposit - if you were holding the property as a capital asset (an investment), then the $100 would be treated as a capital gain.
Report the "sale" in the Stocks, Mutual Funds, Bonds and Other interview found under Federal > Income and Expenses > Investments.
Consider it as the sale of land with a cost basis of "0". Depending on how long you have held the property, it will be taxed as a long-term capital gain or a short-term capital gain.
From Forfeited Deposits: Under Sec. 1234A(1), a taxpayer's gain or loss from the cancellation, lapse, expiration, or other termination of a right or obligation with respect to property will be a capital gain or loss if the property is a capital asset of the taxpayer.
Possibly, but it depends. Did you sell or attempt to sell some property? Why did you receive it; can you provide some more details? There is a section for Less Common Info if it is taxable.
It is a parcel of land that would not perc so we got the due diligence money of $100 split 3 ways
Please clarify:
Hi Todd,
This was a forfeited deposit - if you were holding the property as a capital asset (an investment), then the $100 would be treated as a capital gain.
Report the "sale" in the Stocks, Mutual Funds, Bonds and Other interview found under Federal > Income and Expenses > Investments.
Consider it as the sale of land with a cost basis of "0". Depending on how long you have held the property, it will be taxed as a long-term capital gain or a short-term capital gain.
From Forfeited Deposits: Under Sec. 1234A(1), a taxpayer's gain or loss from the cancellation, lapse, expiration, or other termination of a right or obligation with respect to property will be a capital gain or loss if the property is a capital asset of the taxpayer.