I have a client who has a pending sale on a parcel of real estate. They have received a deposit of $75,000. The purchaser needs an extension of their contract into 2013. Can my client include the $75,000 in income in 2012 or do they have to wait until 2013 when the contract is closed? The sale does have contingencies.
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It's income only when sale (settlement) takes place. (Sounds like a rich guy thinking his marginal rate will be increased next year. (grin))Originally posted by equinecpa View PostChEAr$,
Harlan Lunsford, EA n LA -
Actually not a rich person at all but they are selling their farm to a developer and have capital gains. Ughh. Deal was to have closed in 2012 but doesn't look like all the zoning approvals will happen before 2013.Comment
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Well SURELY our congress (the best that money can buy; Rogers) will extend favorable capital gains tax rates.Originally posted by equinecpa View Post
Uh. I mean.. they WILL, won't they?ChEAr$,
Harlan Lunsford, EA n LAComment
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