Disposal > Income Classification dialog (990 only)

Alerts and notices

See also: Disposal tab or Enter Disposal Information dialog overview

Use the Income Classification dialog to enter income classification data when recording an asset disposal for a 990 client.

After selecting the asset in the Asset Detail dialog, click the Disposal tab. The Income Classification button is available when you select Sold / Scrapped or Like-Kind Exchange from the Method field and enter a date in the Date disposed field.

Fields & buttons

Select the appropriate item (Donation or Purchase) from the drop-down list.

Enter the name of the party to whom the selected asset was sold.

If this sale generated unrelated business income, select the appropriate unrelated business code from the drop-down list for this field.

If this disposal is excluded by section 512, 513, or 514, select the appropriate exclusion code from the drop-down list for this field.

Enter the exempt purpose information.

990-PF group box

The fields and checkboxes in this group box are available only if the client is a 990 - Private Foundation client.

Mark this checkbox if the asset being disposed of is investment property. If this checkbox is marked and if the disposal is not part of unrelated business income, the disposal is considered in the calculation of Form 990-PF, Part IV.

Enter the basis of the property at the date of disposition.

If the private foundation owned the asset on December 31, 1969, enter the fair market value of the property on that date.

If the private foundation owned the asset on December 31, 1969, enter the adjusted basis of the property on that date.

990-T group box

This group box appears only when Sold / Scrapped is selected as the method of disposal and the open client is a 990 - Exempt Organization client.

Use the Description of property, Date acquired, and Cost or basis fields to enter information about a replacement property purchase. An applicable organization may defer a portion of the tax liability of the current sale if the organization acquires other property within a specified time period.

When these fields are completed, a Taxable Gain on Sale of Property by a Section 501(c)(7),(9)(17) Organization worksheet is prepared to support the amounts reported on Form 4797.

Note: These fields apply only to sales reported on Form 4797 for Form 990-T.

Use the Highest level of debt and Average adjusted basis fields to report the gains and losses from the sale of debt-financed property. In the Highest level of debt field, enter the highest debt level in the last 12 months.

When these fields are completed, a Sale of Debt Financed Property worksheet is prepared to support the amounts reported on Form 4797. Sale amounts are multiplied by this ratio and then displayed on Form 4797 in UltraTax/990.