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steps for dissolution of tax-exempt entity on Form 990 in Pro Series Professional

dak794
Level 1

What is the best procedure for disposing of assets that are still being depreciated when a tax-exempt entity is dissolved?

Does every asset need a disposition date and value of 0 if discarded for information to flow-through on the final Form 990 return correctly?

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6 Replies 6
Just-Lisa-Now-
Level 15
Level 15
What happened to the asset?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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dak794
Level 1

Hi Lisa,

Thanks for responding.  The tax exempt agency is an ambulance service.  The 2 ambulances (2003 and 2006) were given to another ambulance service in lieu of money owed to them for their assistance on calls.  A power stretcher was given to a different ambulance service in lieu of money owed to them for their assistance on calls.  The building and improvements were transferred over to the local municipality and the balance in the checking account is going to the municipality as well.  Many of the other assets were fully depreciated computers and office furniture.  There were pagers and radios that are in the possession of responders - most fully depreciated and never returned.

The only option I can see in Pro Series is to enter a disposition date for each asset and 0 for the sales price since nothing was sold.  This causes some larger losses on the building and improvements that because they were not fully depreciated.

Is there any other guidance you can recommend?

Thanks,

dak794

 

 

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Just-Lisa-Now-
Level 15
Level 15
well, the ones that were given to cover a debt would be sold for the value of that debt.

990s arent in my wheelhouse at all, sorry. Im not sure what happens when assets are transferred to the municipality.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
dak794
Level 1

Thanks for your input Just-Lisa-Now.

 

Have a good day!

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sjrcpa
Level 15

These are noncash grants made at FMV. No loss on "disposition". Just stop depreciation.


ex-AllStar
Just-Lisa-Now-
Level 15
Level 15
to stop depreciation in ProSeries, just enter the date of disposal, leave the sales price blank, no zero. That takes it out of service as of that date, with no gain/loss.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪