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Visitor I

Agreement to Occupy Prior to Closing

In 2017, I sold my house. As part of the contract to purchase, an addendum was signed by both parties that allowed the buyer to move into the house prior to closing.  For the right to occupy the house prior to closing, the buyer paid me per diem until closing.  How is the money I received handled from a tax standpoint?  Do I report it as income?  If so where?  Thank you in advance for helping me.

2 Comments
Visitor III

Agreement to Occupy Prior to Closing

As rent on Schedule E

TurboTax Specialist

Agreement to Occupy Prior to Closing

Yes, report the income received prior to your house closing as rental income on the schedule E. Enter the property details under the Rental/Royalty section then select the Income section from the Summary page.

 

Rental Summary