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Purchase of Future Receivables

Sueli
Level 1

I don't know how to enter the Purchase of Future Receivables on Schedule C. If the money received is considerede income. Thanks. Sueli

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4 Replies 4
BobKamman
Level 14

Wouldn't these be inventory items?  Handled the same as buying and selling buggy whips, except the seller is the customer who pays down the debt.  

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qbteachmt
Level 15

It isn't clear if your client has Factored (sold) the receivables, which typically is a type of secured debt (liability). Or, your client Bought them (an asset) and will be collecting later (is the factoring agent).

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BobKamman
Level 14

On second thought, my mistake was to assume the question was about purchase of receivables, when it probably involves sale of receivables.  

Anyone interested in buying my accounts payable?  

dkh
Level 11

@BobKamman wrote:

Anyone interested in buying my accounts payable?  


what about a like kind exchange