dascpa
Level 11
04-09-2024
12:55 PM
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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.