My responses are as follows:
- Based on your additional details, your 2025 final form 1065 is due the 15th day of the 3rd month after the purchase date; This would be April 15th, 2025.
- I would not file this return (2025) until you have filed your 2024 form 1065 and allowed it to "digest" into the IRS system. This could lead to a letter writing quagmire.
- Extend the 2025 form 1065 by April 15th.
- When filing the extension for the 2025 form 1065, I would include a letter with the 7004 explaining that the business was sold and the extension is for the 2025 tax return for which forms are currently not available.
- Based on your additional comments, just report the earnest money as a deposit; not income.
- This assumes you are maintaining a balance sheet, which is always recommended, regardless of whether you are below the requirements of the instructions for the 1065.
- I would not delay on getting the form 8594 completed by both the buyer and seller. Best to do this now. This form will need to be included with both the buyer and seller's tax returns; and it should go without saying that they need to agree.
- Yes, the form 8594 will be included with your 2025 form 1065.
- Since you will most likely be paper filing the 2025 form 1065, be sure to send that return certified mail return receipt. Very important.
- Since the 2025 form 1065 will most likely not be available when you need to complete and file the return, just use the 2024 forms and update all 2024 dates to 2025; by just lining through the 2024 and add 2025 next to it.
*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.
