A number of things going on and not sure of all the facts:
- Is the C corp liquidating?
- If "yes", then I am going to recommend you have a one on one with a tax professional; there will most likely be tax consequences you are not expecting.
- If "no", then you have the following:
- You need to complete a form 6252 and file it with your return
- This form will compute the amount of gain to report each year
- If the Goodwill amount (purchase price) is adjusted, then you will file a revised form 6252
- Entry for the installment sale
- Dr. Note Receivable
- Cr. Deferred Gain (liability account)
- Entry for payment on installment note
- Dr. Cash
- Cr. Note Receivable
- Dr. Deferred Gain (liability account)
- Cr. Gain (once again, this amount should agree to what is reported on form 6252)
- Unless you sold purchased Goodwill, your basis in this is zero, so all cash received will be gain
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
