I sold land and the buyer has deposited money into an escrow account from which I receive a monthly check. When the sale if completed the amount of money I have received will be deducted from the selling price. If the sale does not go through, I get to keep all the funds I have received. The sale was not completed in 2022, How do I report the income using Turbo Tax?
If you received payments from the escrow account during 2022 you can enter them as miscellaneous income and then deduct that amount from the sale price when you receive the balance in 2023.
To enter miscellaneous income go all the way to the bottom of the wages and income section of TurboTax. Once there it will prompt you for a description of the income and you can say "real estate escrow payments" or the equivalent". This way you don't pay any self employment income on the payouts.
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