Skip to main content

Legal

Tax & Accounting

Trade & Supply

Risk & Fraud

News & Media

Books

Developers

Federal input screens

Screen K1Sale - Sale of Section 179 Property from Pass-Through Entities (1120)

General Information

The treatment code describes the nature of the asset. The treatment codes are shown in the fieldview and should be manually entered for all assets.
Enter
X
 to indicate the asset sold is qualified real property (QRP) asset. The sale of a QRP asset is reported as two separate items on the Section 179 Disposal Worksheet for the S Corporation and for the shareholder.
Enter
X
 if the disposition was due to a casualty or theft. This field should be marked only when a treatment code of
3
 is entered in the
Treatment
 field in this screen.
Enter the state postal code to allow certain state applications to determine if this sale should be included in calculations.
Enter
X
 if either PA or WI is entered in the
State postal code
 field, and the disposal does not qualify for installment treatment.

Sale Information

Enter acquired and sold dates in the MMDDYY format. If you want the word VARIOUS to print for the date on the return, enter either
V
 or a date of
999999
. Enter
I
 or
999998
 in the
Date acquired
 field to designate an asset as inherited; /1120 treats this as a long-term holding period.
The depreciation amount should not include the amount of any section 179 deduction.
Enter the amount of section 179 expense for this asset that was originally passed through from the partnership.

Installment Sale Information

This field is for information purposes only. UltraTax CS marks this field on proforma when a prior-year like-kind exchange included an installment obligation. Enter the current-year payments received for the obligation in the
Total current year payments received
 field.
UltraTax CS proformas the qualified real property section 1245/1250 percentage to this field when the prior-year qualified real property asset data was shared from a pass-through entity and sold on the installment basis.
UltraTax CS proformas an
X
 to this field when a percentage is proforma’d to the
Qualified real property Section 1245/1250 percentage
 field.
Enter the income recapture amount reported in the year of sale on Form 6252, line 12.
Enter the remaining gross profit amount as of the beginning of the year. UltraTax CS/1120 uses the amount to produce the installment sale history statement.

Casualty or Theft Information

Enter the fair market value (FMV) of the property before and after the loss. For C Corporations, if the
Fair market value after loss
 field is blank, UltraTax CS/1120 assumes that the casualty or theft totally destroyed this property. UltraTax CS/1120 allows an entry of zero in the
Fair market value after loss
 fields.
Chat now

error-icon

Triva isn't available right now.

Check out the support page for our phone number and hours

error-close