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Casualty / Theft - No Replacement or Replacement disposal method
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This article covers the fields available for data entry with the Casualty / Theft - No Replacement or Casualty / Theft - Replacement disposal method.
To see these fields, edit an asset, select the disposal tab, and select Casualty / Theft as the method. Then enter a date disposed.
This disposal method is not available in mass dispositions.
note
- The application doesn’t automatically handle exchanges involving non-qualifying property; it assumes all losses are unrecognized.
- Casualty / theft information transfers to Form 4684 in UltraTax CS .
Fields & buttons
Casualty/theft event
Enter the casualty or theft event that caused the disposition of the property. To report gains and losses from a casualty or theft, file a separate Form 4684, Part 1 for each casualty or theft event.
- Acasualtyis the damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual.
- Atheftis the taking and removing of money or property with the intent to deprive the owner of it. The taking of property must be illegal under the law of the state in which it occurred and it must have been done with criminal intent.
Adjusted basis original asset
This is the original basis of the asset calculated with depreciation allowed or allowable. (Depreciation allowed or allowable is the greater of depreciation that should have been taken or the depreciation actually taken.)
For a partial disposition, enter the adjusted basis calculated with depreciation allowed or allowable for the whole asset before it was divided.
note
You can override the calculated amount by entering a different amount in this field. To remove the override amount and enter the application-calculated amount, choose Edit > Delete Override.
Insurance reimbursement received
Enter the insurance reimbursement received.
Reimbursement entitled to but not received
Enter the amounts not yet received.
If a claim will be filed in the future or has been filed but reimbursement has not yet been received, include insurance coverage (less any deductible).
Other reimbursement includes:
- The part of a Federal disaster loan under the Disaster Relief Act that is forgiven and, therefore, does not have to be paid back.
- Repayments for damages and cost of repairs made by lessor.
- Court awards collected (minus lawyer's fees and other necessary expenses).
- Repairs, restoration, or cleanup services by relief agencies.
- Payment from bonding company.
- Some grants, gifts, and other payments if conditional.
Grants, gifts and other payment received
Assets are considered grants and gifts only if they must be used specifically to repair or replace your property.
Other payment includes:
- The part of a Federal disaster loan under the Disaster Relief Act that is forgiven and, therefore, does not have to be paid back.
- Repayments for damages and cost of repairs made by lessor.
- Court awards collected (minus lawyer's fees and other necessary expenses).
- Repairs, restoration, or cleanup services by relief agencies.
- Payment from bonding company.
- Any other payments only if they must be used specifically to repair or replace your property.
See Form 4684 instructions for more information.
FMV of non like-kind property received
Enter the FMV (fair market value) of any other non like-kind property received as reimbursement.
Reimbursement to pay off mortgages or liens
Enter any reimbursement used to pay off a mortgage or other lien on the damaged, destroyed, or stolen property.
Expenses incurred obtaining reimbursement
Enter the expenses incurred obtaining the reimbursement.
Coverage if not filing an insurance claim
Enter the coverage amount, even if a claim will not be filed.
Deductible if not filing an insurance claim
Enter the deductible amount, even if a claim will not be filed.
FMV before casualty/theft
Enter the amount at which the property would have been sold between a willing buyer and a willing seller, each having knowledge of the relevant facts.
FMV after casualty/theft
Enter the fair market value of the entire asset after the casualty or theft. This field is not available if Casualty /Theft – Replacement has been selected as the disposal method.
Gain realized
This field displays the recognized gain for the Tax treatment.
To view an on-screen explanation of how the recognized gain is calculated, select the underlined field label to open the Gain Realized window. Select the Print button to print the calculation explanation.
Postpone entire gain
Mark this checkbox to elect non-recognition by not reporting the gain. Facts relating to the conversion should be reported on the return. Even if no details are furnished, a failure to report the gain is considered an election not to recognize it.
See Regulation section 1.1033(a)-2(c)(2) and IRS Publication 547 for more information.
note
This checkbox is available only for the Casualty / Theft - No Replacement method of disposal.
Postpone gain
In this field, select one of the three options for handling the gain.
- None (default):No gain is postponed.
- Up to replacement:The gain is postponed up to the amount of the replacement asset's basis.
- Entire:The entire gain is postponed.
note
This field is available only for the Casualty / Theft - Replacement method of disposal.
Postponed gain
This field displays the postponed gain.
To view an on-screen explanation of how the postponed gain is calculated, select the underlined field label to open the Postponed Gain window. Select the Print button to print the calculation explanation.
Recognized gain/(loss)
This field displays the gain recognized or the loss realized on the exchange.
To view an on-screen explanation of how the recognized gain/loss is calculated, select the underlined field label to open the Recognized Gain or Recognized Loss window. Select the Print button to print the calculation explanation.
Disaster area loss to be taken in previous tax year
Mark this checkbox to indicate that the disaster area loss will be taken in a previous tax year.
Property type
Select the appropriate property type from the dropdown list.
Real Property button
Select this button to open a window in which you can specify section 1250 information.
note
This button is available only for assets with a 25-year or greater MACRS life.
Book Calculation button
Select this button to open a window in which you can view and adjust the asset's Book calculation.
note
This button is available only if the
Follow GAAP calculations for disposals
checkbox is marked for the Book treatment. To see this option, go to Setup, then Treatments, then Options.Replacement like-kind asset group box
This group box appears only when
Casualty / Theft - Replacement
is the method of disposal.Asset number
When an asset is disposed of through a like-kind exchange or through casualty / theft with a replacement asset, the new asset is automatically created and the next available asset number is entered in this field.
note
This field is available only for the Casualty / Theft - Replacement method of disposal.
Description
Enter a description of the new asset.
note
This field is available only for the Casualty / Theft - Replacement method of disposal.
Acquired
Select the method by which the asset was acquired from the dropdown list.
note
This field is available only for the Casualty / Theft - Replacement method of disposal.
Cost if purchased
Enter the fair market value of the asset received in the exchange.
note
This field is available only for the Casualty / Theft - Replacement method of disposal.
Adj Tax basis
This field displays the adjusted basis for the Tax treatment.
note
This field is available only for the Casualty / Theft - Replacement method of disposal.
Adj Book basis
This field displays the adjusted basis for the Book treatment.
note
This field is available only for the Casualty / Theft - Replacement method of disposal.
Treat entire basis as a current year acquisition (Election 1.168(i)-6(i))
Mark this checkbox to elect to treat the entire basis of the replacement property as a current-year acquisition. When this checkbox is marked, an election statement prints with Form 4562.
note
- This checkbox is automatically marked if you choseDo not follow IRS Notice 2000-4 and Reg 1.168(i)-6from the Like-kind exchange and the trade took place after 2/27/04.
- This field is available only for the Casualty / Theft - Replacement method of disposal.