Hello!
I sold a business last year due to differences with a partner. He purchased my membership shares via an installment sale, where he paid a down payment and entered an agreement to pay out a fixed amount over a 3 year period on a monthly basis. He has effectively defaulted and I am currently pursuing a lawsuit. He seems to not have filed taxes with our accountant yet. How would I account for the taxes I owe on the sale of this transaction if my accountant does not have the company's tax return for 2024? In 2024, he paid me a $4k and one payment of ~$700.
I'm curious because although I sold my shares and received some funds, this does not account for the money I put into the business, so I am still at a loss in the grand scheme of things. How would I account for this, and how would I account for the lack of a tax return for the final year of the business in which I was involved?
Thank you!
