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Screen KYTDAdj - Tax District Adjustments (1120)

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Sale or Exchange of Section 179 Property (S Corp)

Gain (loss) reported separately from federal Schedule K, line 17d (Force)
The IRS requires S Corporations to separately report to the shareholder the sale, exchange, or other disposition of assets where a Section 179 expense deduction was claimed in a prior year. These asset dispositions are no longer reported on federal Forms 4797, 4684, 6252 or 8824, but instead are separately reported on federal Schedule K, line 17d and in the Schedule K-1 statements. The gain or loss on the disposition of Section 179 assets is calculated from information entered in the federal SalePT and 8824PT screens in the Income and activities folders, and K1Sale and 8824 screens in the K1 1065, 1041 folder.
The application reduces the basis of the asset by the amount of the Section 179 deduction when calculating the gain or loss. This amount is included on Form OL-S/OL-D, Page 4, line 10, if a gain, or line 13 if a loss. A nonsubmittable statement prints, detailing this amount. Use the
Force
 box to override the calculated amount. If
0
 is entered, no adjustment is made.

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