Hello,

New client as of end of Sept: Had S-Corp for his law practice – sole shareholder. Sold his client base to another lawyer on 12/30/22 for $1,500,000 – 5 years of payments – 25% of revenue earned by other lawyer. Form 8594 prepared showing $1.5M total sales price from buyer to SCorp.

Client stopped operating the S-Corp in 2023. Prior tax preparer did not file a 1120-S for 2024.

2023 1120-S filed reported first payment or $306,541 of capital gains which flowed thru to his 1040.

Is there a way for me to report the 2nd payment ($302,594.52) directly on his 1040 without needing a K-1 from the SCorp or does a 2024 1120-S need to be filed (late) to properly report?

Also is installment sale the proper way to report? I am thinking no since client receives a % each year based on revenue earned, not a % of the sales price.

FORGIVE IF THIS IS A DUPLICATE POSTING – THOUGHT ORIGINAL POST THIS MORNING DID NOT GO THRU