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Reporting ordinary loss on redemption of contingent debt instrument

kklund
Level 1

Fidelity statement reporting ordinary loss on redemption of contingent debt instrument.  How is this reported in Lacerte?  I can see an old posting under ProSeries but it points to Sales of Business Property, which this is not, and doesn't help a Lacerte user.  I can't see any boxes under Dispositions that would classify this portion of the disposition income as "ordinary" instead of capital.

Thanks in advance,

Kathy

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PhoebeRoberts
Level 9
Level 9

Like that old posting, I run it through the 4797 to make it ordinary. In the 4797 section of Screen 17.1 Dispositions, enter a -1 for depreciation allowed.

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PhoebeRoberts
Level 9
Level 9

Like that old posting, I run it through the 4797 to make it ordinary. In the 4797 section of Screen 17.1 Dispositions, enter a -1 for depreciation allowed.

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kklund
Level 1

Thank you, Phoebe!  I see how this works now.  Really appreciate your taking the time to respond.

Kathy

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