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Hello, you will need a cost allocation of the total purchase price. Both the buyer and seller must report this on Form 8594 and they must match. If you client sold intangible assets only, you will need to go back and see what amount of his purchase price was allocated towards these intangibles. Should be on the amortization schedule. The gain would be the sales price less the adjusted basis. To report the gain under the installment method, use Form 6252. You would only report gain on principal payments received that year. If to the taxpayer's advantage, you may also elect to recognize the gain in full in the first year. Does this help?
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