Screen Sale - Sale of Business Property (1041)

Overview

Use this screen to enter asset sale information for Form 4797 and current-year installment sales for Form 6252. Use Screen OthAsset to enter additional information needed to calculate Form 4797 and the InstPY Screen to enter prior-year installment sale information.
The application uses the dates of acquisition and sale entered on this screen to determine short-term versus long-term transactions, and the appropriate part of Form 4797, Form 6252, or Schedule D in which to report sales.

General Information

State
Enter the postal code for the activity’s income to be state source. If you leave this field blank, the activity’s income is not state source.
Disposition due to casualty or theft (Form 4797, Part III assets only)
Mark this field to indicate that the sale of property was due to a casualty or theft and it is reported on Form 4797, Part III.
Casualty / theft gain postponed
For a casualty or theft gain reported on Form 4797, Part III, if some of the gain is postponed due to the purchase of replacement property, enter the amount of postponed gain.
Sale to related party
Enter
X
to generate a reversing item on Form 4797 for a disallowed loss on the sale.
Does not qualify for installment treatment
For Pennsylvania returns, enter
X
for a unit that does not qualify for installment treatment.

Sale Information

Date acquired / Date sold
If you are filing this return electronically, the IRS Publication 5078 does not accept "Various" in the
Date acquired
or
Date sold
fields. If the sale appears in Part I or II, the IRS accepts "Inherit" in the
Date acquired
field. Enter a valid date in the
Date sold
field or the return will be rejected.
Commissions and other expenses of sale
Include fixing-up expenses for Form 6252 in this field. The amount is added to the basis for disposition and reported separately for installment sales.

Form 6252 - Installment Sales

When entering an installment sale for the current year enter the applicable information in the
Mortgage and other debts the buyer assumed
and
Total current year payments received
fields.

Form 6252 - Related Party Installment Sale Information

Explanation if no tax avoidance purpose
If the non-tax avoidance exception applies to the sale, enter the explanation required by Form 6252 in the statement dialog for this field.
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