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Federal input screens

Screen 4684B - Business Casualty / Theft Loss (1040)

Overview

Use the 4684B screen to complete Form 4684, Casualties and Thefts. Enter information for each casualty or theft occurrence.
If there are more than four assets lost in the casualty or theft, add a second unit of the 4684B screen for the fifth and additional assets. Enter the same number in the
Casualty/Theft
 number field for assets lost in the same casualty or theft.
If you choose the asset module as the method of data entry, this screen is not applicable and does not appear. To enter asset information using this screen, select
File
 then
Client Properties
, select
Advanced Properties
, and clear the
Enter asset detail information
 box in the Enter Asset Detail tab. For details, refer to Where do I enter asset data?
The dates of acquisition and sale in this screen are used to identify short-term and long-term transactions and the appropriate part of Form 4797, Form 6252, or Schedule D in which to report sale.
Asset module transfer
Data entered in the asset module automatically transfers to the appropriate field(s) on this screen.
The transferred data displays in blue text.
You can overrule the transferred amount by entering the appropriate amount in any transferred field.
For more information on Overrules, please refer to the Statements overview and Enabling notifications of overruled data.

Form 4684 - General Information

Use this section of the screen to complete general information about the casualty or theft.
These fields contain information about the business unit activity. The information is used to gather and coordinate information for the business unit activity. For example, these fields enable UltraTax CS to link information (such as income, loss, sales, and asset detail) to the activity. The following table lists the available forms and the folders in which they are located.
Folder
Form description
Business
Schedule C
Farm
Schedule F
Farm Rental
Form 4835
1040 Adjustments
Schedule A
K1 1065, 1120S
Schedule E, Page 2
Rent & Royalty
Rent / Royalty
The occurrence description transfers automatically from the asset module . The description you enter is used to identify the casualty or theft on the final unit's Form 4684B, Part II, Summary of Gains and Losses. The description is also reported on each Form 4684, Section B - Business and Income-Producing Property. You must enter a description in this field when you enter assets manually.
Use this field to identify the client to which the casualty or theft belongs. If you leave this field blank, UltraTax CS defaults to the taxpayer.
If you are processing a state return, enter a state postal code in this field for proper state processing. Use this field to identify where the casualty or theft occurred. Some state applications use this information to calculate the state return. Press
F4
 in this field to see a list of available state postal codes.
Refer to State fields for more information.
Enter a unique number for each casualty or theft. Each casualty or theft should be entered in a separate unit of the 4684B screen. For example, if there were two casualties with lost assets in the current year, enter
1
 in the
Casualty/Theft number
 field in the first unit of the 4684B screen, then enter information for the assets lost in the first casualty. For the second casualty, add a second unit of the 4684B screen, enter
2
 in the
Casualty/Theft number
 field in the second unit, then enter information for the assets lost in the second casualty.
The date of the casualty or theft is used to determine long- or short-term gains or losses; however, it does not transfer to the return. Only one date of casualty per occurrence is allowed. The date of the casualty or theft will automatically transfer from the asset module .
Enter
X
 in this field to delete this unit of the 4684B screen during next year's proforma.

Business / Income Producing Properties

Use this section to complete Form 4684, Section B.
Enter a description of each property. A property description is required for the calculation of the property's corresponding fields in this screen.
The asset number will automatically transfer from the asset module . The asset number will not transfer to the return, but will serve as a link to the data in the asset module .
The home office number will automatically transfer from the asset module . The home office number will not transfer to the return, but will serve as a link to between Form 4684, Form 8829, and/or the Home Office Worksheet.
Enter
1
 to indicate trade or business property,
2
 to indicate income-producing property, or
3
 to indicate employee property . Enter the code or select it from the fieldview. This entry determines which column is used to report losses for the casualties or thefts in Part II of Section B.
The short-term or long-term holding period is determined based on the dates entered in the
Date acquired
 and
Date of casualty or theft
 fields. To change the holding period, enter
1
 for short-term or
2
 for long-term.
Enter
X
 if the gain on the casualty or theft was reported on Form 4797, Part III. Casualty and theft gains are reported on Form 4797, Part III, when there is a long-term gain from the casualty or theft of depreciable property. The casualty or theft also needs to be entered in the Sale screen as well as in the 4684B screen. Be sure to enter
X
 in the
Disposition was due to casualty/theft
 field in the Sale screen to report the casualty or theft. If part or all of the gain must be recaptured, the capital portion of the gain will be reported on Form 4684, line 33, instead of Form 4684, line 34. The ordinary portion will be reported on Form 4797, line 13.
Enter
X
 if you choose to postpone the entire gain on the casualty or theft, and either the replacement property was not acquired in the current year or only a portion of the replacement property was acquired in the current year. The asset information in the 4684B screen proformas to the 4684PY screen in the following year.
Enter the date each property was acquired. Enter
I
 in the
Date acquired
 field to designate an asset as inherited. This is treated as a long-term holding period.
Enter the cost or adjusted basis before accumulated depreciation.
The accumulated depreciation amount in this field should include the amount of any section 179 deduction. This amount is used to calculate the cost or adjusted basis of the property reported on Form 4684, Part I.
Enter the insurance or other reimbursement expected or received that is related to each property. Include any coverage available even if a reimbursement claim is not filed.
Enter the fair market value (FMV) of the properties before and after the loss.
Enter the alternative minimum tax gain or loss adjustment. This amount is used when calculating the adjusted gain or loss reported on Form 6251.

Business / Income Producing Replacement Information

Use this section to enter replacement property acquired in the year of the casualty or theft.
Enter a description of the replacement properties. This information prints in a postponed gain statement attached to Form 4684.
Enter
X
 in this field if the replacement property was acquired from a related party. The entire gain is recognized in full in the year of the casualty or theft.
Enter the date the replacement property was acquired. This information prints in a postponed gain statement attached to Form 4684.
Enter the cost of the replacement property. This information prints in a postponed gain statement attached to Form 4684.
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