You definitely should hold off on reporting the deposit received in 2024 until the 2025 sale where it became part of the purchase money. Before that it really didn't count as your money.
You shouldn't file an extension for the 2025 return. You should file the 2025 return. Since your business ended in January you fiscal year ended then too. It ended on the date that you sold the business. The final return is due April 15th (the 15th day of the 3rd month following the end of your fiscal year). You should use the 2024 tax forms and tax software and create a 2025 return. Then you should print out a copy and cross out the number 2024 and write in 2025. Then you mail in the return.
Which will include form 8594.
@seadonkey79
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