sale of intangible assets on 1120-s

Forum|Forum|1 month ago
June 1, 2026
2 replies
18 views

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

ProSeries Professional

sjrcpa

Level 15

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

Is that correct? There should be an 8594.

The more I know the more I don’t know.

T

TaxGuyBill

Level 15

@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.

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.

ljrAuthor

Level 9

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

Level 15

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

The more I know the more I don’t know.

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