- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Seller Note Not Repaid
I sold my dry cleaning business (S-Corp) in 2017 and took a seller note back; however I did not file via the installment method. I claimed the entire sale as a regular business sale of assets. The seller has not paid me since September 2018 and I'm taking this as bad debt (I'm 99% certain he is not going to pay me). The S-Corp was dissolved in 2017 with the filing. Do I need to restate/amend 2017 & 2018 with interest income from what seller paid me? So then in 2019 how do I report the loan loss as bad debt (principal + accrued interest)? Will I need to file an 1120S or go with Sch. C. I can prove that it was business debt as I have a promissory note signed by both parties with Asset Purchase Agreement and the ceasing of payments last September 2018. Just need some clarification as I look at taxes at year end. Thank you