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Disposition/Sale of Properties

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Level 2

How do I enter in the sale/disposition of properties. That already have depreciation and attached land? I've tried all the steps and my numbers are still coming out incorrect.

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4 Replies 4
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Employee
Employee

Hello 123csm!

I'm making an assumption that you're entering a bulk sale. Please correct me if I'm wrong!

For a bulk sale, ensure you have entered all building, land, improvements, etc. as separate assets. 

 On the main asset for the bulk sale (typically the main building):
  1. In the Quick Entry Grid, click on Details to expand the input section.
  2. Scroll to the General Disposition Information section.
  3. Enter the date sold in the field Date sold, disposed or retired (MANDATORY).
  4. Enter any Basis adjustments (if applicable).
  5. Enter the Expense of sale or exchange.
  6. Scroll down to the Sale of Asset (4797/6252) section.
  7. Enter the Sales price for the bulk sale.
  8. Scroll to review the other fields for any other information related to the bulk sale.

Note: When selling a building, land, and improvements, use the building as the main asset. In all other situations, use the lowest number asset as the main asset .

For all subsequent assets associated with the same bulk sale, make two entries:

  1. In the Quick Entry Grid, click on Details to expand the input section.
  2. Scroll to the General Disposition Information section.
  3. Enter the Date sold in the field Date sold, disposed of, retired.
  4. Enter the Asset number for the main asset in the field Bulk sale (multi-asset disposition: select the asset containing disposition amounts).
  5. Review all other fields for possible required entries. Keep in mind that all information regarding the sale is entered on the main asset (e.g. sales price)
Note: All assets in a bulk sale must be of the same type - that is, 1245, or 1250, or intangible, etc. This classification is determined by what depreciation method is used. Prepare a separate bulk sale for each different category of asset.



If you're following those steps, what specifically isn't coming out correct?


~Intuit Tax Product Specialist


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Level 2

I have tried everything I have 11 properties to do. I was on a chat on Sunday and on the phone for 3 hours today with Proconnect. They couldn't help. I have followed all of those steps. Can you point in the right direct to get some expert help? I want to purchase?

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Employee
Employee

Most commonly I see problems when amounts are entered on all assets instead of just the main asset. I'm curious as to what is not correct based on your interpretation. If you are following those steps exactly then perhaps there is something outside of the bulk sale affecting the amounts being reported- in other words you are entering the sale correctly but there is another input, credit, deduction, limitation, rule etc. that is impacting the amounts being reported on the return. 



~Intuit Tax Product Specialist


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Level 2

Yeah, there are other factors involved to match the entry on the books. So basically along with the building, land + sale - associated expenses = gain or loss. This is not adding up.

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