dascpa
Level 11

Prior answer is correct.  Always look to the "legal" side of a deal. The sale was in 2024. Therefore any transaction in 2023, unless listed as a partial sale in the contract (like they sold certain assets in 2023 and the rest in 2024) would be a down-payment, a deposit towards the eventual sale.  This is where cash basis is not correct on reflection of taxable income.