Calculate book gain or loss on like-kind exchange or casualty/theft loss
General tax conventions for book treatment on like-kind exchanges and casualty/theft losses are followed by UltraTax CS and Fixed Assets CS by default. If it's necessary to calculate the gain or loss for book treatment purposes using GAAP conventions, you can follow this procedure.
- In theAssettab (UltraTax CS), or while in any activity (Fixed Assets CS), selectSetup, thenTreatments.
- Select theBooktreatment then selectOptions.
- In theBook Treatment Optionswindow, mark theFollow GAAP calculations for disposalscheckbox.
- SelectOK.
- Modify the asset.
- Go to theDisposaltab.
- Enter the details of the disposal.
- SelectBook CalcorBook Calculation. Note that this isn't available until you complete step 3.
- Fill out the information in theBook Calculationscreen. For a like-kind exchange, enter theFMV of the asset given up. If necessary, you can also override the calculated value forBook adj basis of original assetin the field provided.
