A number of questions:
- I'm assuming that there is a purchase / sales agreement?
- What is the effective date of the sale in the contract?
- Has the buyer and seller completed form 8594?
- What's the date listed on this form?
- Will you be filing a final form 1065?
- This will be due the 15th day of the 3rd month following the sale
- The problem here is that the 2025 tax forms will not be finalized for a long time; closer to the end of 2025.
- This will necessitate you filling an extension
- I also wouldn't file final 2025 return close to when you file your 2024 form 1065 to minimize any confusion at the IRS.
- Were the $$ just earnest money?
- Would these funds be returned if the sale is not completed?
- These $$ are not taxable until you either finalize the sale, or you receive these funds if the sale is not completed.
*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.
