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Sold Data List

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Level 2

A 990 client sold a Data List (Names & Addresses).  This is not what they are in business for (this list was a self generated list).  Where should I input this in Lacerte?

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Level 15

Other income, and possibly the 990-T


ex-AllStar

View solution in original post

6 Replies 6
Highlighted
Level 15

Other income, and possibly the 990-T


ex-AllStar

View solution in original post

Highlighted
Level 2

Will they have to pay tax on the gain?

Thank you so much for your answer.

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Highlighted
Level 15

If it's unrelated business income.


ex-AllStar
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Level 2

Thank you.

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Highlighted
Level 15

When you research this, consider whether they really sold it or "rented" it for xx uses or x months.

Also look at what type of entity the buyer is.


ex-AllStar
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Level 2

They sold their business list of names and addresses.  They are going out of business next year.  There basis is $0, but they claim it took $5,022 of labor to create.

I put it in 'Unrelated Business Income' in screen 20, giving it a business code of 900099 and an amount of $5,022.  

On screen 1 do I put for 'Type Of Return' 990-T only?

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