Follow these steps to enter a bulk sale on the Depreciation screen:
If the client sold 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.
- From the left of the screen, select Deductions and choose Depreciation.
- Locate the lowest numbered asset within the group.
- For example, if assets #3, 5, and 7 were the group for the sale, asset #3 would be the lowest asset.
- In the Quick Entry grid for the lowest numbered asset, click the blue Details button to expand the input section.
- From the top of the screen, select Dispositions.
- Under the General Disposition Information section, enter any applicable fields:
- Date sold, disposed, or retired (MANDATORY)
- Basis adjustment (land, etc.) [Adjust]
- Expenses of sale or exchange
- Scroll down to the Sale of Asset (4797/6252) section and enter the Sales price (-1=none) for the bulk sale.
- Review the other fields for any other information related to the bulk sale for this asset.
- Go back to the Quick Entry grid and complete only the following two entries for all subsequent assets associated with the same bulk sale:
- Date sold, disposed of, retired
- Bulk sale (multi-asset disposition: select the asset containing disposition amounts)
- Remember to click the blue Details button in the Quick Entry grid to expand the input fields.
- Review all other fields for possible required entries.
- Keep in mind that all information regarding the sale is entered on the main asset.
All assets in a bulk sale must be the same type (for example, 1245, 1250, intangible, etc.). This classification is determined by which depreciation method is used. Prepare a separate bulk sale for each different category of asset.