Reporting early occupancy payment on sale of the house

Forum|Forum|11 months ago
April 13, 2025
1 reply
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We have sold our old house (used to be our primary residence) in 2024, allowing buyers to move in one month earlier (prior to closing date). They paid us separate fee for one month. How do I report it? Turbotax treating our house as rental, if I enter this payment as rent, and it is not the case. We did live in a new house (purchased in 2023) while selling the old house.

PatriciaV

Employee

Your best option is to apply this payment as a reduction in the purchase price. If this agreement was included in the sales agreement, you have good support for treating the income as part of the sale.

Your other option is to report this as Other Reportable Income (under Less Common Income >> Miscellaneous Income).

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