SCorp Business Sold - No Asset Classification - Simple Purchase Agreement

[jknecht]

I have a client who sold their business (simple cash sale 150K) with ZERO Asset classification.  The seller has about 39K in depreciated assets that stayed with the business.  There is no love between the seller and buyer and all goes through an attorney.

Working on getting even the address of the buyer (I represent the seller) and ID number as that is not even present.

I would like some thoughts on the best way to handle this situation with the sale.

(1) I can push and get an asset classification but we are 15 days from filing (yes they are all late) and it will probably be a fight.
(2) I can file and indicate that they were NOT agreed.
(3) Other options?

[TaxGuyBill]

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@jknecht wrote:

I have a client who sold their business

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Taxpayer sold the business?  Or the S-corporation sold all of its assets?

[jknecht]

Sorry...yes the SCorp sold all the assets.  I was at the DDS office with my son on my phone doing it.  My apologies.

[TaxGuyBill · Accepted solution]

I would go for your option #2.  Have the taxpayer estimate the FMV of each item, and prorate the sales price per item based on that.  And as you said, indicate on the 8594 that they were not agreed.

It would definitely be ideal to get the address and ID of the seller, but I would say if you can't get it, just file it without it (and make a note with the e-file that your client was unable to get it).  Maybe write "refused" or something like that on that section of the 8594.

[jknecht]

Thanks. I did put the address of the business as the buyers address for now.  

If no EIN I will do refused if allowed.

One simple sale of the assets and off to the races.

Thanks.

[IRonMaN]

"(3) Other options?"

Wait for what you need and if the return is late, it's late.  Not your fault if folks can't get their act together.

Fire the client.

Retire - or just change professions.  Around here, dentists don't seem to work more than 4 days a week, so it is something to look at since it beats the hours a tax preparer puts in.

[jknecht]

Why would I make my client late because of the buyer that refuses to provide information?

Retire.....Nah....I already am.  I went to bed tired...and woke up tired....see...I am RE-TIRED