Form 8594 Line 4 Asset Transferred Worksheet?

[David]

Single SH S Corp client entered into an asset sale agreement in 2011. Client's business is financial advisor. He sold the client list, future revenues, name and goodwill. There is also a non-compete agreement and an agreement that he will provide consulting services over a certain time.

I am filling in Form 8594 Asset Acquisition Statement. I checked yes in line 6 indicating that there is a non-compete agreement and an employee/mangement agreement.

I filled in the appropriate information on the Ln4 - Asset Transferred tab thinking this is where the required information is entered in the ATX program. I listed the sale amounts and the types of agreement on the statement tab.

I get an error saying that since I checked yes on line 6 I need to complete the Ln4 - Asset Transferred worksheet specifying the information I listed on the Ln4 - Asset Transferred tab I completed.

I can't find a Ln4 - Asset Transferred worksheet anywhere in the ATX program. I can't file until I clear up this issue.

Can anyone tell me where to find this worksheet or how to get work around the error?

Thanks.

[jasdlm]

On the 3rd tab, Ln 4 - Asset Transferred, you have to enter prose about the statement (i.e. in the last one I did, for example, there was a covenant not to compete, but no value was assigned to it, so I included this in the comments). On Page 1, Part II of the 8594, you enter the Fair Market Value and the Allocation of the Sales Price (the acutal numbers from 4). Not sure if this answers your questions, but I didn't have trouble getting it to go through.

[David]

Thanks for your help on this. The tab I used was the correct one.

I originally listed the amounts and the type of agreement in list form on that tab. I changed it to enter complete sentences explaining the amounts paid and the type of agreement and the e-file check accepted it with no errors.

That is strange why it didn't like a list of amounts and type of agreements.

[David]

What is even more strange is that I don't have the purchaser's TIN or address entered yet, which is required, and the e-file program accepted the return.

Does this mean that I only need the name of the purchaser and not the other "required" information?

[jasdlm]

You need the EIN and address of the purchaser. I wouldn't file without.