USA Installment sale - Reduced Selling Price

Joined
Nov 13, 2020
Messages
9
Reaction score
1
Country
United States
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!
 
Joined
Nov 13, 2020
Messages
9
Reaction score
1
Country
United States
I know this is a hard issue. Any suggestions on a forum for accountants and CPAs?
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top