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Enter sale of non-inventory assets

note
To enter data on the
Sale
 screen as described in these steps, you'll need to use summary asset data entry rather than the asset module. To make the
Sale
 screen available for data entry, select
File
,
Client Properties
,
Advanced Properties
, the
Enter Asset Detail
 tab, then clear the
Enter asset detail information
 checkbox.
  1. Select
    File
    ,
    Open
    , then select the client.
  2. Depending on the type of sale, select
    Income & Deductions
    ,
    Direct
    , or
    Rent & Royalty
     folder in the folders block, then select the
    Sale
     screen tab.
  3. Enter the
    Description
     of the sale.
  4. In the Sale Information section, enter the date acquired and sold, gross sales price or insurance proceeds received, cost or other basis, commissions and other expenses of sale, and depreciation allowed or allowable.
  5. In the Form 4797, Part III — Recapture section, enter the recapture information.
  6. Go to the Income Classification Information section.
  7. Select a
    Method of acquisition
     code.
  8. If the asset was used in an unrelated business activity:
    1. Mark the
      Unrelated business activity
       checkbox.
    2. Make sure that you assign the asset to an event or rental activity with an unrelated business activity code.
    note
    • The sale appears on Form 4797, Parts I, II, or III based on the code you enter in
      Force
       on the
      Sale
       screen.
    • If you leave the
      Unrelated business activity
       checkbox cleared, the sale is included in the calculation of Form 990, Form 990-EZ, or Form 990-PF, but not in the calculation of Form 990-T. The sale doesn't appear on Form 4797.
  9. Mark the
    Investment property
     checkbox if the asset was an investment property.
    note
    This information is necessary for the proper calculation of Form 990-PF. The client entity type needs to be 990PF (private foundation).
  10. If the property was an investment property, enter the following:
    1. The basis of the asset at the date of disposition.
    2. The fair market value of the asset if owned as of December 31, 1969.
    3. The adjusted basis of the asset if owned as of December 31, 1969.
    note
    This information is used on Form 990-PF, Part IV.
  11. If you're reporting gains and losses from the sale of debt-financed property, use
    Highest level of debt
     and
    Average adjusted basis
     to enter the highest debt level in the last 12 months and basis information.
    note
    Sale amounts are multiplied by this ratio before transferring to Form 4797.
    note
    If the entity is a section 501(c)(7), (9), or (17) organization that purchased replacement property for the asset sold, the organization may defer a portion of the tax liability of the current sale if it acquired the other property within a specified time period.
    Description of property
    ,
    Date acquired
    , and
    Cost or basis
      only apply to sales reported on Form 990-T.

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