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January 6, 2025
Question

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?

  • January 6, 2025
  • 3 replies
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    3 replies

    Employee
    January 6, 2025

    Report as other income. 

    January 7, 2025

    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

    Employee
    January 7, 2025

    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.