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The sale of self-created section 197 intangibles are reported on form 4797 - as sale of business assets.You will need it to add to your books with zero basis - and total sale price would be your gain.
That gain will be taxed as ordinary income - not as long term capital gain.
Only amortizable section 197 intangibles qualify for long term capital gain tax treatments.
We may not just make-up the basis of the asset from its "net worth"...
The basis is the actual cost which is capitalized.
I doubt that you capitalized any expenses related to that asset - otherwise you would already have it on the balance sheet.
When the asset was created during actual business activities and all related expenses were deducted - the basis is zero.
For installment sale - you generally using installment reporting method - but you may opt out and report the total income as received in the year of the sale.
You will find reporting requirements and examples in the IRS publication 537 -
.Use Form 6252 , Installment Sale Income, to report an installment sale in the year the sale occurs and for each year you receive an installment payment.
You report interest on an installment sale as ordinary income in the same manner as any other interest income. If the installment sales contract does not provide for adequate stated interest, part of the stated principal may be recharacterized as imputed interest or as interest under the original issue discount rules, even if you have a loss.
You must use the applicable federal rate (AFR) to figure the unstated interest on the sale.