How do you enter a disposition of a rental activity with multiple depreciated assets in Lacerte?
How to enter a disposition of rental activity
There are several ways to dispose of activities in Lacerte, but for assets reported on Screen 22, Depreciation, the easiest way is to enter them as a Bulk Sale:
- Go to Screen 22, Depreciation.
- Select the primary asset that you want to dispose of (For example, a Rental Home).
- Scroll to the General Disposition Information section.
- Enter the Date sold, disposed, or retired (MANDATORY).
- Enter the Basis Adjustment (if applicable).
- Enter the Expenses of sale (if applicable).
- Scroll down to the Sale of Asset (4797/6252) section.
- Enter the Sales Price (-1 = none).
- This is the total sales price for all the assets included in the disposition.
- This is the total sales price for all the assets included in the disposition.
- Locate the Miscellaneous subsection.
- Enter a 1 or 2 in 1 = complete disposition of passive activity, 2 = partial (triggers 8582).
- Select the next Asset that you want to dispose of (For example, Land).
- Scroll down to General Disposition Information section.
- Enter the Date sold, disposed, or retired (MANDATORY).
- Select the main asset from the Bulk sale (multi-asset) disposition: select the asset containing dispositions amount (Ctrl+T) from the dropdown menu. Don't enter any sales information on this asset.
- Repeat steps 11–14 for all assets associated with this disposition.
See Generating Form 8582 Passive Activity Loss Limitations for an Individual Return for more information.