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Screen 4684B - Business Casualty / Theft Loss (1040)
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Overview
Use the 4684B screen to complete Form 4684, Casualties and Thefts. Enter information for each casualty or theft occurrence.
If there are more than four assets lost in the casualty or theft, add a second unit of the 4684B screen for the fifth and additional assets. Enter the same number in the
Casualty/Theft
number field for assets lost in the same casualty or theft.If you choose the asset module as the method of data entry, this screen is not applicable and does not appear. To enter asset information using this screen, select
File
then Client Properties
, select Advanced Properties
, and clear the Enter asset detail information
box in the Enter Asset Detail tab. For details, refer to Where do I enter asset data? The dates of acquisition and sale in this screen are used to identify short-term and long-term transactions and the appropriate part of Form 4797, Form 6252, or Schedule D in which to report sale.
Asset module transfer
Data entered in the asset module automatically transfers to the appropriate field(s) on this screen.
The transferred data displays in blue text.
You can overrule the transferred amount by entering the appropriate amount in any transferred field.
note
- Subsequent asset module transfers do not overwrite overruled fields.
- Overruled field values are not used in the calculation of the return.
- To restore the transferred amount, right-click and select Delete overrule.
- To acknowledge an overruled field, right-click and select Acknowledge overruled data.
For more information on Overrules, please refer to the Statements overview and Enabling notifications of overruled data.
Form 4684 - General Information
Use this section of the screen to complete general information about the casualty or theft.
Unit / Form
These fields contain information about the business unit activity. The information is used to gather and coordinate information for the business unit activity. For example, these fields enable UltraTax CS to link information (such as income, loss, sales, and asset detail) to the activity. The following table lists the available forms and the folders in which they are located.
Folder | Form description |
|---|---|
Business | Schedule C |
Farm | Schedule F |
Farm Rental | Form 4835 |
1040 Adjustments | Schedule A |
K1 1065, 1120S | Schedule E, Page 2 |
Rent & Royalty | Rent / Royalty |
Occurrence description
The occurrence description transfers automatically from the asset module . The description you enter is used to identify the casualty or theft on the final unit's Form 4684B, Part II, Summary of Gains and Losses. The description is also reported on each Form 4684, Section B - Business and Income-Producing Property. You must enter a description in this field when you enter assets manually.
T, S, J
Use this field to identify the client to which the casualty or theft belongs. If you leave this field blank, UltraTax CS defaults to the taxpayer.
State
If you are processing a state return, enter a state postal code in this field for proper state processing. Use this field to identify where the casualty or theft occurred. Some state applications use this information to calculate the state return. Press
F4
in this field to see a list of available state postal codes.Refer to State fields for more information.
Casualty/Theft number
Enter a unique number for each casualty or theft. Each casualty or theft should be entered in a separate unit of the 4684B screen. For example, if there were two casualties with lost assets in the current year, enter
1
in the Casualty/Theft number
field in the first unit of the 4684B screen, then enter information for the assets lost in the first casualty. For the second casualty, add a second unit of the 4684B screen, enter 2
in the Casualty/Theft number
field in the second unit, then enter information for the assets lost in the second casualty.Date of casualty or theft
The date of the casualty or theft is used to determine long- or short-term gains or losses; however, it does not transfer to the return. Only one date of casualty per occurrence is allowed. The date of the casualty or theft will automatically transfer from the asset module .
Delete on next year's proforma
Enter
X
in this field to delete this unit of the 4684B screen during next year's proforma.note
The 4684B screen information proformas to the 4684PY screen when there is a current-year postponed casualty or theft gain without replacement property. If a current-year postponed casualty or theft gain without replacement property does not exist in this unit of the 4684B screen, there is no need to enter
X
in this field.Business / Income Producing Properties
Use this section to complete Form 4684, Section B.
Description property...
Enter a description of each property. A property description is required for the calculation of the property's corresponding fields in this screen.
Asset number
The asset number will automatically transfer from the asset module . The asset number will not transfer to the return, but will serve as a link to the data in the asset module .
Form 8829 home office number
The home office number will automatically transfer from the asset module . The home office number will not transfer to the return, but will serve as a link to between Form 4684, Form 8829, and/or the Home Office Worksheet.
Property type
Enter
1
to indicate trade or business property, 2
to indicate income-producing property, or 3
to indicate employee property . Enter the code or select it from the fieldview. This entry determines which column is used to report losses for the casualties or thefts in Part II of Section B.Force holding period
The short-term or long-term holding period is determined based on the dates entered in the
Date acquired
and Date of casualty or theft
fields. To change the holding period, enter 1
for short-term or 2
for long-term.note
If you enter
Various
in either date field, UltraTax CS defaults to short-term.Gain reported on Form 4797, Page 2
Enter
X
if the gain on the casualty or theft was reported on Form 4797, Part III. Casualty and theft gains are reported on Form 4797, Part III, when there is a long-term gain from the casualty or theft of depreciable property. The casualty or theft also needs to be entered in the Sale screen as well as in the 4684B screen. Be sure to enter X
in the Disposition was due to casualty/theft
field in the Sale screen to report the casualty or theft. If part or all of the gain must be recaptured, the capital portion of the gain will be reported on Form 4684, line 33, instead of Form 4684, line 34. The ordinary portion will be reported on Form 4797, line 13.Postpone entire gain
Enter
X
if you choose to postpone the entire gain on the casualty or theft, and either the replacement property was not acquired in the current year or only a portion of the replacement property was acquired in the current year. The asset information in the 4684B screen proformas to the 4684PY screen in the following year.note
This field will be ignored if the
Property acquired from related party
field in the Replacement section of this screen is marked.Date acquired
Enter the date each property was acquired. Enter
I
in the Date acquired
field to designate an asset as inherited. This is treated as a long-term holding period.note
If you enter
Various
in the Date acquired
field, UltraTax CS defaults to a short-term treatment. You may specify the holding period by using the Force holding period
field.Cost or adjusted basis
Enter the cost or adjusted basis before accumulated depreciation.
Accumulated depreciation
The accumulated depreciation amount in this field should include the amount of any section 179 deduction. This amount is used to calculate the cost or adjusted basis of the property reported on Form 4684, Part I.
Total net reimbursement
Enter the insurance or other reimbursement expected or received that is related to each property. Include any coverage available even if a reimbursement claim is not filed.
FMV before / after loss
Enter the fair market value (FMV) of the properties before and after the loss.
note
If the
FMV after loss
field is blank, it is assumed that the casualty or theft totally destroyed this property. In that case, the loss calculates without taking into account any decreases in fair market value. An entry of zero is allowed in the FMV after loss
field.AMT gain / loss adjustment
Enter the alternative minimum tax gain or loss adjustment. This amount is used when calculating the adjusted gain or loss reported on Form 6251.
Business / Income Producing Replacement Information
Use this section to enter replacement property acquired in the year of the casualty or theft.
Description replacement property
Enter a description of the replacement properties. This information prints in a postponed gain statement attached to Form 4684.
Property acquired from related party
Enter
X
in this field if the replacement property was acquired from a related party. The entire gain is recognized in full in the year of the casualty or theft.Date acquired
Enter the date the replacement property was acquired. This information prints in a postponed gain statement attached to Form 4684.
note
If you enter
Various
in the Date acquired
field, UltraTax CS defaults to a short-term treatment. You may specify the holding period by using the Force holding period
field.Cost of replacement property
Enter the cost of the replacement property. This information prints in a postponed gain statement attached to Form 4684.