dkh
Level 15
04-28-2021
04:18 PM
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You've said your client sold the home for a loss therefore there you don't need to be concerned about the home sale gain exclusion. The loss is not deductible.
The "reimbursement" is W2 income. As @qbteachmt pointed out - it's nothing more than an employer being kind with a bonus. Enter the W2 as you would any other W2.