Client sold 50 acres. He was given 1/3 of the money in December as a down payment. Settlement was in January. Is it possible to report the down payment one year and the balance the next? Would definitely help his tax situation to report in 2 years, but if the 1099 comes out in 2018, how to I account for the money received in 2017?
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6252 for 17 or 18? When the 1099 comes out for the full amount in 18, how do i account for the payment in 17. -
What does the sales contract say? Report the down payment in 2017 if that is when it was received and adjust the 1098s if issued in 2018 with the full sales amount.Originally posted by JenMO View PostBelieve nothing you have not personally researched and verified.Comment
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Rev Rul 69-93
Had one of these a few years ago. The down payment is a deposit and is not reported until the sale is actually closed. So, in your example, the sale occurs in 2018 and will be reported in 2018.Comment
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