Medical professional basically closed his practice in the fall of 2017. January of 2018 we removed ourselves from performing services, he owed money and was not really able to explain what and why of what was going on. He understood signed the agreement and we left. He had contracted for a bunch of leasehold improvements and the contractor had sued him for payment and we had been served and gave the information requested to the contractor's attorney (previously discussed it with my insurer). Two weeks ago he showed up at the office with a certified check for the balance owed and asked if we could do business and personal returns for 2017 and 2018. I said we could if he could get the information to do it. He walked away from his medical practice - debt for the leaseholds and the leaseholds the main thing. He said he assumed the 1245 property was turned over to the note holder or the landlord, but he was never informed of the transaction??? He thought there was a sheriff sale??
Per the county records there was a sheriff sale of his house which listed the mortgage holder and creditors as getting the home in May, 2019.
HE NEVER USED AN ATTORNEY THROUGH ANY OF THIS?? That was one of the reasons I left. He claims he did not get any information- the county shows the foreclosure for the mortgage was at $121,000 - the mention of other creditors I think means when it is sold the "other" creditors get to split the excess, should be $200,000+. This will all take place in 2019. There is no personal tax on his residence - the only refinance was 10 years ago to put an addition on.
Can I just clear out all assets against all liabilities(notes) at the end of 2018? Cash Basis taxpayer - by the end of 2018 there should be almost 0 except a State MNCARE tax left over from 2017.
Is there anyway to look for information on the business assets and get any accounting for them - do I need it?
2019 - amount not known to me on subsequent sale of his residence that may have gone to other creditors - does that give him basis in his S Corp (business operation). He never filed bankruptcy so he may hear from creditors after home proceeds, and 1245 property settlements are settled? I think the landlord is the only one who would be left??
His wife died in 2019 and his mental state was probably affected by that, she was in memory care for five years.
Any ideas of where to look for information would be holpful!!
Thanks