USA Installment sale - Reduced Selling Price


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Nov 13, 2020
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Greetings Forum Folks,
I have a question regarding an installment sale that went bad.
Client sold business for $745k in 2018 via installment sale with $500k payment in 2018 and $245k payment due in 2019. GP% was 13.2%.
Buyer defaulted, did not pay in 2019 and they then settled on a reduced amount due of $225k in year 2020 and called it good. So the question is: Can we amend the 2018 tax return to show the reduced GP% (now 2.8%)? This would result in a refund for the client of ~$8000! Or? Thank you Forum Folks!
 
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Joined
Nov 13, 2020
Messages
6
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0
Country
United States
I know this is a hard issue. Any suggestions on a forum for accountants and CPAs?
 

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