sale of intangible assets on 1120-s

[ljr]

Haven't had a sale of an s-corp in ages. They sold the assets/improvements etc.

Trying to do the sales in the asset entry worksheet. F&F and leasehold improvements worked fine. I have intangible assets like startup costs/ franchise fees that the error is saying not sec 1245 property sale price should be blank - do not use asset entry worksheet see tax help for specific instructions. I've been typing all different things into tax help and nothing comes back. 

I took gross sales price and allocated to each item based on % of total assets. it calculates the correct gain but get error messages. not sure where or how to input for these items.

any help would be appreciated - thanks 

[sjrcpa]

"I took gross sales price and allocated to each item based on % of total asset"

Is that correct? There should be an 8594.

[TaxGuyBill]

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@ljr wrote:

I have intangible assets like startup costs/ franchise fees that the error is saying not sec 1245 property sale price should be blank - do not use asset entry worksheet see tax help for specific instructions.

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Yeah, ProSeries doesn't like the disposition of intangible assets.

I haven't thought through if there are problems with it, but I've just entered the disposition date on the Asset Entry Worksheet to stop the amortization, then manually enter the income or loss on the tax return as 'other' income or expense.

[ljr]

looks like they did not have or do form 8594

I will enter the sale date to stop the amortization and see where to enter the other income. 

[sjrcpa]

They should. The 8594 goes with Seller's and Buyer's tax returns.

[ljr]

I've requested a copy - I shall see but my real questions was that I cannot figure out was how to get proseries in the 1120-s to do the sale of intangible assets. 

[Kathi_at_Intuit]

Hi @ljr great to see you in the Community, and thanks for posting about the sale of intangible assets. We found this post which may help: 

https://accountants.intuit.com/community/proseries-tax-discussions/discussion/sale-of-section-197-in...

If you still need assistance, we recommend reaching out to ProSeries Support. While they can’t provide tax advice, they can help with entering the sale in the program.

[Terry53029]

I believe you just report them on 4797. Here are the instructions for 4797, and are your sure you do not need form 8594. In ProSeries on the asset worksheet for the intangible just put sale date with no sale amount, then just manually fill out the 4797 I believe on page two, but check the instructions

https://www.irs.gov/pub/irs-pdf/i4797.pdf

[ljr]

Thanks everyone