ProConnect HelpIntuit HelpIntuit

Entering a sale or disposition of assets in ProConnect

SOLVEDby IntuitProConnect Tax23Updated March 22, 2022

In ProConnect Tax, a sale or disposition of assets can be entered in the Dispositions (Schedule D/4797/etc. screen) or the Depreciation screen. Click on the screen you want to use below to view instructions on entering the item.

  1. Go to the Dispositions or Schedule D/4797/etc. screen:
    • Individual: Income > Schedule D/4797/etc.
    • Partnership: Schedule K Dispositions
    • S-Corporation: Schedule K > Dispositions (D, 4797, etc.)
    • Corporate: Income > Dispositions (Sch. D/4797etc.)
    • Fiduciary: Income > Schedule D/4797/etc.
    • Exempt organization: Revenue > Dispositions
  2. Enter the basic information for the sale:
    • Enter the Quantity (if applicable).
    • Enter the Description of Property.
    • Enter the Date Acquired.
    • Enter the Date Sold.
    • Enter the Sales Price.
    • Enter the Cost or Basis.
    • Click the Details button to expand the input screen to enter information such as Expense of sale.
    • Enter any additional information that applies to the disposition.
    • Next, scroll down to the Form 4797 section (if applicable).
    • Enter a "-1" or an amount in the field, Depreciation Allowed (-1 = None, Triggers 4797) (if applicable).
  1. Go to the Depreciation (4562) screen:
    • Individual: Deductions > Depreciation
    • Partnership: Ordinary Income > Depreciation (4562)
    • Corporation: Deductions Depreciation
    • S-Corporation: Ordinary Income > Depreciation (4562)
    • Fiduciary: Deductions > Depreciation
    • Exempt organization: Expenses > Depreciation
  2. Enter the information for the asset:
    • Enter the Description of Property.
    • Select the Form from the drop down menu.
    • Select the Activity name or number from the drop down menu.
    • Select the Category from the drop down menu.
    • Enter the Date placed in service.
    • Enter the Cost or Basis.
    • Enter the Current Section 179 (if applicable).
    • Select the Method from the drop down menu.
    • Next, click the Details button to expand the input screen.
    • Locate the Federal Depreciation section.
    • Scroll down and Locate the Regular Depreciation subsection.
    • Enter any Prior depreciation/amortization.
    • Complete any other applicable information about the asset.
  3. Scroll down to the General Disposition Information section
    • Enter the Date sold (MANDATORY).
    • Enter the Expenses of sale (if applicable).
    • Scroll down to the Sale of Asset (4797/6252) section.
    • Enter the Sales price.
    • Enter any other information that applies to the sale.

Specific scenarios

In most cases cryptocurrency or virtual currency is reported on the tax return in the same manner as property such as stock or other capital gains or losses. See Frequently Asked Questions on Virtual Currency Transactions for the IRS guidelines. If you are reporting virtual currency transactions in the 1040 return, be sure to mark the Yes box on the "At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency" question.

To use the Passthrough K-1 screen:

  1. Go to the Input Return tab.
  2. On the left-side menu, select Income.
  3. Select the appropriate K-1 input screen: 
    • Partnership Info (1065 K-1) or
    • S-Corp Info (1120S K-1).
  4. Locate the other income section:
    • Line 11 - Other Income for partnerships or
    • Line 10 - Other Income for S-Corps.
  5. Enter the amount in Ordinary gain (loss) to be reported on 4797, line 10, or in Passive ordinary gain (loss) to be reported on 4797, line 10.

To use the Dispositions screen:

  1. Go to the Input Return tab.
  2. On the left-side menu, select Income.
  3. Click on Schedule D/4797/etc.
  4. In the Quick Entry grid, enter a Description of property.
  5. Enter the Date acquired
    • If this information isn't available, enter a negative date during the tax year, such as -01/01/18 for a 2018 return.
  6. Enter the Date sold.
    • If this information isn't available, enter a negative date that falls after the Date acquired, such as -12/31/18.
  7. Enter the net Section 1231 gain in Sales price.
  8. Click the Details button.
  9. Enter a 1 in 1=short-term, 2=long-term [Override], if the dates you entered in steps 5 and 6 were more than 1 year apart.
  10. Check the box Disposition from K-1 supplemental information (if applicable).
  11. On the left-side menu, select Form 4797.
  12. Enter -1 in Depreciation allowed (-1=none, triggers 4797).
  13. On the left-side menu, select Corresponding Activity Information - Passive (8582)/At-Risk(6198)/Investment Tax(8960).
  14. Scroll down to the Corresponding Activity Information - Passive (8582) / At-Risk (6198) / Investment Tax (8960) section.
  15. Select the appropriate Form number of related activity.
  16. Select the Activity name or number.
  17. Check the box Include in at-risk/basis limitations, if applicable.

Do not utilize these instructions for a like-kind exchange.

When disposing of a portion of an asset in the deprecation input, enter the percentage of basis as a decimal or enter the amount of the basis that is being disposed into the field Percentage (.xx) or amount of basis sold. The program will treat only the portion entered as a disposition and the remaining portion will remain in the program for future depreciation. The remaining portion will be reflected on the depreciation schedules in the same listing as the original asset.

Follow these steps to enter a partial disposition:

  1. Navigate to applicable screen for Depreciation in the applicable tax return.
  2. Scroll down to the section,  General Disposition Information.
  3. Enter the Date sold, disposed, or retired (MANDATORY) and any Expenses of sale or exchange.
  4. Scroll down to the section,  Sale of Asset (4797/6252).
  5. Enter the Disposition information including Sales Price.
  6. Enter the Percentage (.xx) or amount of basis sold.
    • Do not enter 1 into this field.

For an exclusion:

  1. Click in the field, Cost or Basis and then click the + icon to the right of the field to expand the input field.
  2. Enter the original cost on the first line.
  3. On the next line, enter the exclusion for reducing the cost or basis.

Related topics

Was this helpful?

You must sign in to vote, reply, or post
ProConnect Tax

Sign in for the best experience

Ask questions, get answers, and join our large community of Intuit Accountants users.