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Disposal > Income Classification dialog (990 only)

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Use the Income Classification window to enter income classification data when recording an asset disposal for a 990 client.
After selecting the asset in the asset module's Asset Detail window, click the Disposal tab. The Income Classification button is available when you select Sold / Scrapped or Like-Kind Exchange from
Method
 and enter a date in
Date disposed
.

Fields and buttons

Method of acquisition
Select the appropriate item (Donation or Purchase) from the dropdown list.
To whom sold
Enter the name of the party to whom the selected asset was sold.
Unrelated Business Activity
If this sale generated unrelated business income, select the appropriate unrelated business code from the dropdown list for this box.
Exclusion code
If this disposal is excluded by section 512, 513, or 514, select the appropriate exclusion code from the dropdown list for this box.
Exempt purpose information
Enter the exempt purpose information.

990-PF group box

The fields and checkboxes in this group box are available only if the client is a 990 - Private Foundation client.
Investment property
Mark this checkbox if the asset being disposed of is investment property. If this checkbox is marked and if the disposal is
not
 part of unrelated business income, the disposal is considered in the calculation of Form 990-PF, Part IV.
Basis at date of disposition
Enter the basis of the property at the date of disposition.
Fair market value as of 12/31/69
If the private foundation owned the asset on December 31, 1969, enter the fair market value of the property on that date.
Adjusted basis as of 12/31/69
If the private foundation owned the asset on December 31, 1969, enter the adjusted basis of the property on that date.

990-T group box

This group box appears only when Sold / Scrapped is selected as the method of disposal and the open client is a 990 - Exempt Organization client.
Sec. 501(c)(7),(9)(17) fields
Use the
Description of property
,
Date acquired
, and
Cost or basis
 boxes to enter information about a replacement property purchase. An applicable organization may defer a portion of the tax liability of the current sale if the organization acquires other property within a specified time period.
When these boxes are completed, a
Taxable Gain on Sale of Property by a Section 501(c)(7),(9)(17) Organization
 worksheet is prepared to support the amounts reported on Form 4797.
note
These apply only to sales reported on Form 4797 for Form 990-T.
Debt Financed fields
Use the
Highest level of debt
 and
Average adjusted basis
 boxes to report the gains and losses from the sale of debt-financed property. In the
Highest level of debt
 box, enter the highest debt level in the last 12 months.
When these boxes are completed, a
Sale of Debt Financed Property
 worksheet is prepared to support the amounts reported on Form 4797. Sale amounts are multiplied by this ratio then displayed on Form 4797 in UltraTax/990.

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