In 2019 I sold the majority function of my S-Corp via an Installment Sale Asset Purchase Agreement. I do not plan to liquidate the S-Corp but it will have no income in 2020. 2019 Proceeds were for inventory. Future year proceeds are allocated for intangible assets & Goodwill. The 2019 1120-S resulted in a (loss) because inventory was sold at less than book value.
Help with the following questions would be greatly appreciated.
1) Should future payments for the APA go to the S-corp since it is not being liquidated?
2) Where do I recognize the installment sale proceeds for future years for the business? Does it go on an 1120S, or only on a K-1?
3) Since future year APA proceeds will be treated as long-term capital gains am I still able to recognize the 2019 loss amount that was greater than my S-corp basis?
