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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 586
Experience:  10 years experience
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When is a deposit on sale of property taxable. A taxpayer

Customer Question

Hi when is a deposit on sale of property taxable.
JA: The expert will know how to help. Please tell me more, so we can help you best.
Customer: A taxpayer received a non-refundable deposit from a real estate buyer. It will take longer than a year. when does the taxpayer report the deposit on the sale of property The home is primary residence and also used for business
JA: Is there anything else important you think the expert should know?
Customer: no
Submitted: 2 months ago.
Category: Tax
Expert:  emc011075 replied 2 months ago.

Hi. My name is ***** ***** I will be happy to help you.

He does not need to report the deposit. He will report the capital gain, if any once the sale become final. Until the sale is finalized he does not know how much of the proceeds will be taxable.

Expert:  emc011075 replied 2 months ago.

Any questions?

If the sale will never finalize and he keeps the deposit than he will report the deposit as other income in the year the deposit becomes nonrefundable.