After discussing with the client, the original intangible was created when they purchased the business and they are still paying this through an installment sale. There is still some remaining assets so I think this asset will stay on the tax return under assets. I still must "account" for the $2mil per Form 8594. Shouldn't some of the shareholders basis in the S corp be a part of the basis and reduce the gain? He should have approximately $1 million that I think would follow this transaction. The ending balance sheet will have approximately $500k in real property that was retained. If I don't get to use any of the shareholder's basis - my balance sheet will have $500k of property and RE of $1.5mil. I am still working through all of the balance sheet items but I am struggling with the shareholder's basis and how much gain on the sale transaction. Any help appreciated.