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Level 1
April 11, 2022
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How do I handle down payment?

  • April 11, 2022
  • 1 reply
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Client ordered large piece of farm equipment and paid $5,000 down in 2021 but due to supply problems, it won't be delivered until 2022 at which time client will pay remainder of purchase price.  How do I handle the down payment on 2021 return?

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Best answer by abctax55

1040 - nowhere (unless you want to put it somewhere just to track it...)

Entity return = deposit.  As an asset.

 

1 reply

abctax55
abctax55Answer
Level 15
April 11, 2022

1040 - nowhere (unless you want to put it somewhere just to track it...)

Entity return = deposit.  As an asset.

 

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