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Federal input screens

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

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General Information

Treatment
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.
Section 1250 property
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.
Disposition due to casualty or theft
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.
State postal code
Enter the state postal code to allow certain state applications to determine if this sale should be included in calculations.
Does not qualify for installment treatment (State use only)
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

Date acquired / sold
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.
Depreciation allowed or allowable…
The depreciation amount should not include the amount of any section 179 deduction.
Section 179 expense deduction passed through
Enter the amount of section 179 expense for this asset that was originally passed through from the partnership.

Installment Sale Information

Prior year installment from like-kind exchange
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.
Qualified real property Section 1245/1250 percentage
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.
note
  • In the year of sale, the data related to a qualified real property asset sold at a gain is shared from the pass-through entity to two separate K1Sale screens. UltraTax CS applies the section 1245/1250 percentage to all the amounts with data shared to the K1Sale screen.
  • If you enter the full amount of the payment received in the
    Total current year payments received
     field, enter
    X
     in the
    Apply qualified real property percentage to current year payment received
     field.
  • If you enter the payment received after applying the 1245/1250 percentage in the
    Total current year payments received
     field, clear the
    X
     in the
    Apply qualified real property percentage to current year payments received
     field.
  • See Notice 2013-59, 2013-40 IRB 297 – IRC Sec(s). 179 for additional information on the disposition of qualified real property.
Apply qualified real property to current year payments received
UltraTax CS proformas an
X
 to this field when a percentage is proforma’d to the
Qualified real property Section 1245/1250 percentage
 field.
note
  • If you enter the full amount of the payment received in the
    Total current year payments received
     field, enter
    X
     in this field.
  • If you enter the payment received after applying the 1245/1250 percentage in the
    Total current year payments received
     field, clear the
    X
     in this field.
  • In the year of sale, the data related to a qualified real property asset sold at a gain is shared from the partnership or S Corporation return to two separate K1Sale screens. UltraTax CS proformas these amounts when the asset is sold on the installment basis.
  • See Notice 2013-59, 2013-40 IRB 297 – IRC Sec(s). 179 for additional information on the disposition of qualified real property.
Income recapture from Form 4797 (C Corp)
Enter the income recapture amount reported in the year of sale on Form 6252, line 12.
Beginning of year, remaining gross profit (C Corp)
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

Fair market value before / after loss
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.

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