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Federal input screens

Screen Sale - Sales (1065)

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Forms 4797 and 6252 - General Information

Unit / Form
The form and unit number automatically complete when assets are transferred from the asset module. Enter data in these fields only when you manually enter asset information and you want to use these fields for identification purposes.
Description
The application uses this description, which automatically transfers from the asset module, as the unit description in the folders block. This field is mandatory.
note
The electronic file includes only the first 20 characters (Form 4797, lines 2a and 10a) or 40 characters (Form 4797, line 19a) of the sale description. For details about other electronic filing limitations, see Field size limitations for 1065 electronic filing.
Treatment
Enter a code (1, 2, 3, 4, S, L, M, V, X, Y, or Z) based on the nature of the asset. This code controls where the information appears on Form 4797 or Schedule D. The asset module automatically enters the appropriate code based on the nature of the asset.
note
  • Codes S, L, M, V, X, Y, and Z are not available in the Sale Screen in the Income & Deductions folder.
  • If you choose: code V, Section 1202 - 100% exclusion; code X, Section 1202 - 50% exclusion; code Y, Section 1202 - 75% exclusion, or code Z, Section 1202 - 60% exclusion, the application does not list the transaction on Schedule D or Form 4797 but instead includes the amount on Schedule K, Other income (loss).
Disposition due to casualty or theft
Enter
X
 to transfer the gain to Form 4684, Section B, Part II, Casualty or theft gains from Form 4797. Enter
X
 only when code
3
 is entered in the
Treatment
 field in this section.

Sale Information

Date acquired / sold
Enter
V
 to print "Various" for the date on the return. Enter
I
 to print "Inherit" for the date on the return. The application uses the dates of acquisition and sale to determine short-term versus long-term transactions and the appropriate part of Form 4797, Form 6252, or Schedule D in which to report sales.
Commissions and other expenses of sale
For all Form 4797 dispositions, the application adds this amount to the cost or other basis of the property sold. For current year installment sales, the application reports this amount separately.

Form 4797, Part III - Recapture

Use this section to enter information for Form 4797, Part III. The numbers listed on the left side of each field refer to the line numbers on Form 4797, Page 2. Do not use this section to enter information for assets that the partnership sold at a loss.

Related Party Installment Sale Information

Date of second sale
If you enter a date that is more than two years after the date of sale and enter the selling price in the
Selling price of property sold by related party
 field, the application automatically marks Form 6252, The second disposition was more than two years after the first disposition (other than dispositions of marketable securities) and enters the date of disposition. If the second disposition occurred less than two years after the first disposition, additional income may be recognized on Form 6252.
Explanation if no tax avoidance purpose
Use the statement to enter an explanation if the no tax avoidance exception applies to the disposition. If there is data in this statement and the
Special condition if applicable
 field is blank, the application enters an X in the appropriate field on the form and prints the statement.

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