Thank you for your response.
The date of the purchase agreement is a January date in 2025.
8594 has not been completed. I assumed that since the sale takes place in 2025, the 8594 would be completed with our 2025 tax forms?
Final form 1065: the sale date is Jan. 2025, so the final 1065 would be 2025's, not 2024's? We won't have (many) business expenses in 2025, but the sale date is in 2025, so I assumed that I report the sale of the business with my 2025 tax return?
You're saying the final form 1065 has to be competed the 15th day of the 3rd month following the sale, which I did not know. This would be our 2025 return, since the sale and contract dates are both in 2025. This means I should file an extension for the 2025 return now, in March of 2025? I understand your advice of waiting on the 2025 return, by use of a filing extension, in order to prevent confusion.
The deposit dollars were essentially earnest money, yes, and would have been returned had the sale not gone through. The funds were received in Dec. 2024 and the date of the sale, per contract, was Jan. 2025. By what you're saying, I shouldn't report the earnest money/deposit funds on my 2024 tax return, is that correct?
By the sounds of your advice, and I understand your disclaimer, I should hold off on reporting the earnest money in 2024, and report the full sale amount on my 2025 tax return. Also, I should file a business tax extension for the 2025 tax year now, due to the final 1065 timeline rule. And form 8594 is included/attached with the final 1065. Does this all sound correct?
