Enter sale of non-inventory assets
note
To enter data on the
Sale
screen as described in these steps, you'll need to use summary asset data entry rather than the asset module. To make the Sale
screen available for data entry, select File
, Client Properties
, Advanced Properties
, the Enter Asset Detail
tab, then clear the Enter asset detail information
checkbox.- SelectFile,Open, then select the client.
- Depending on the type of sale, selectIncome & Deductions,Direct, orRent & Royaltyfolder in the folders block, then select theSalescreen tab.
- Enter theDescriptionof the sale.
- In the Sale Information section, enter the date acquired and sold, gross sales price or insurance proceeds received, cost or other basis, commissions and other expenses of sale, and depreciation allowed or allowable.
- In the Form 4797, Part III — Recapture section, enter the recapture information.
- Go to the Income Classification Information section.
- Select aMethod of acquisitioncode.
- If the asset was used in an unrelated business activity:
- Mark theUnrelated business activitycheckbox.
- Make sure that you assign the asset to an event or rental activity with an unrelated business activity code.
note- The sale appears on Form 4797, Parts I, II, or III based on the code you enter inForceon theSalescreen.
- If you leave theUnrelated business activitycheckbox cleared, the sale is included in the calculation of Form 990, Form 990-EZ, or Form 990-PF, but not in the calculation of Form 990-T. The sale doesn't appear on Form 4797.
- Mark theInvestment propertycheckbox if the asset was an investment property.noteThis information is necessary for the proper calculation of Form 990-PF. The client entity type needs to be 990PF (private foundation).
- If the property was an investment property, enter the following:
- The basis of the asset at the date of disposition.
- The fair market value of the asset if owned as of December 31, 1969.
- The adjusted basis of the asset if owned as of December 31, 1969.
noteThis information is used on Form 990-PF, Part IV. - If you're reporting gains and losses from the sale of debt-financed property, useHighest level of debtandAverage adjusted basisto enter the highest debt level in the last 12 months and basis information.noteSale amounts are multiplied by this ratio before transferring to Form 4797.noteIf the entity is a section 501(c)(7), (9), or (17) organization that purchased replacement property for the asset sold, the organization may defer a portion of the tax liability of the current sale if it acquired the other property within a specified time period.Description of property,Date acquired, andCost or basisonly apply to sales reported on Form 990-T.
