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Federal input screens

Screen 4684 - Casualty and Theft Loss (1065)

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Overview

Use this screen to complete Form 4684, Page 2. If more than four assets are lost in the casualty or theft, add additional units of the
4684
 screen for the fifth and additional assets. Enter the same casualty or theft number for the assets lost in the same casualty or theft. Use a separate
4684
 screen for each casualty or theft occurrence. Casualty and theft information transfers directly to the
4684
 screen from the asset module.
note
  • Use the
    Ponzi
     screen in the Schedule D folder to enter information for Form 4684, page 3.
  • The application provides a client-specific option to specify the method of entering asset information: enter it either in the asset module or in the various depreciation screens. If you select the asset module as the data entry method, this screen isn't visible. To use this screen to enter asset information, select
    File
    ,
    Client Properties
    ,
    Advanced Properties
    ,
    Enter Asset Detail
     tab, and clear the
    Enter asset detail information
     checkbox to turn off the application default.
  • The application uses the dates of acquisition and casualty or theft you enter in the
    4684
     screen to determine short-term versus long-term transactions and the part of Form 4797 in which to report the casualty.

General Information

Occurrence description
Enter a description of the casualty or theft event. The application uses this description during proforma to determine how to collapse or remove events when there are more than four properties involved in the casualty or theft. This field is mandatory.
Casualty or theft number
Enter a unique number for each casualty or theft. If there are two casualties in the current year, with two assets lost in the first casualty and one asset lost in the second casualty, enter
1
 in this field in the first unit of the
4684
 screen along with the information for the two assets lost in the first casualty. Add a second unit of the
4684
 screen and enter
2
 in this field. Enter the information for the asset lost in the second casualty in the second unit of the
4684
 screen.
Date of casualty or theft
Enter the date of the casualty or theft. You can only enter one date of casualty per occurrence. The date doesn't transfer to the return; however, the application uses the date to determine short-term or long-term gains and losses.

Casualty or Theft Information

Asset number
The asset number automatically transfers from the asset module. The numbers don't transfer to the return, but serve as a link to the data in the asset module.
Holding period
The application determines the short-term or long-term holding period of an asset based on the dates you enter in
Date of casualty or theft
 and
Date acquired
. If you leave the date fields blank, the application defaults to the short-term holding period. Use this field to force the holding period as either short-term or long-term.
Gain reported on Form 4797, Part III
Enter
X
 if the gain on the casualty or theft is reported on Form 4797, Part III. Casualty and theft gains are reported on Form 4797, Part III when there's a long-term gain from the casualty or theft of depreciable property. If all or part of the gain need to be recaptured, the application reports the gain on Form 4684, Page 2, line 33 instead of Form 4684, Page 2, line 34.
note
When you manually enter assets, you'll need to also enter the amount to be reported on Form 4797 in Sale.
Postpone entire gain
Enter
X
 to postpone the entire gain on the casualty or theft if the replacement property wasn't acquired in the current year or only a portion of the replacement property was acquired in the current year. The application proformas the information for the asset in the
4684
 screen to the
4684PY
 screen in the following year.
Date acquired
Enter the date the property was acquired. Enter
V
 to print "Various" for the date acquired. Enter
I
 to print "Inherit" for the date acquired.
Accumulated depreciation
The accumulated depreciation shouldn't include any section 179 expense deduction that was previously passed through to the partners. Assets that had section 179 expense deduction taken in a previous year and were lost in a casualty or theft should be entered in the
SalePT
 screen in the folder.
Fair market value before / after loss
Enter the fair market value of the properties before and after the loss. This information transfers to Form 4684, Page 2, lines 23 and 24. If you enter
0
 (zero) or leave
Fair market value after loss
 blank, the application assumes that the casualty or theft totally destroyed the property. In that case, the application calculates the loss without taking into account any decreases in fair market value.

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