You have a number of issues that need to be addressed:
- First and foremost, the buyer and seller must both complete form 8594. Each will need to include this form as part of their respective return.
- https://www.irs.gov/pub/irs-pdf/f8594.pdf
- https://www.irs.gov/pub/irs-pdf/i8594.pdf
- Based on your initial facts, the buyer and seller need to do some additional work as to the purchase price allocation.
- Once the purchase price allocation has been completed, you will then need to enter the information into TT as if you sold each item.
- The one question that I have is what goodwill is being amortized? Is this something the LLC purchased?
- For the $$ involved, I would recommend that you consult with a tax professional to make sure you are handling the reporting correctly.
- The other issue to be careful of, is when you complete the installment sale form, all depreciation recapture is recognized in the year of sale. There are many times when this catches sellers off guard and they do not receive sufficient funds to pay the tax on the recapture. Another reason to get some professional assistance.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
