Purchase of Future Receivables

[Sueli]

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

[BobKamman]

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.  

[qbteachmt]

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).

[BobKamman]

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]

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@BobKamman wrote:

Anyone interested in buying my accounts payable?  

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what about a like kind exchange