1040-US: Installment sale income from a mass disposal being reported as ordinary income

Alerts and notices
Leave feedback

Internal Employees: Submit feedback

Contact information (optional):

Leave this blank:

Please tell us how we can make this information more helpful.


Characters left:

MFA required for electronic filing

Effective May 3rd, the 2017 version of UltraTax CS requires multi-factor authentication (MFA) to access the electronic filing transmission feature in CS Connect.

Thomson Reuters is committed to proactively evolving our security features to help you protect your firm and your clients' data. For more information about multi-factor authentication, see Multi-factor authentication overview.

Question

For an installment sale originating as a mass disposition, why is the sale income reported as ordinary income and not capital?

Answer

Because there are various purchase dates, the asset module reports the date acquired as "Various." An accurate holding period cannot calculate, so the application defaults to the most conservative tax approach in this situation. You can indicate where to report the gain/loss in the asset module. Make the appropriate selection in the Type of Property field or enter a date in the Date in service field on the Enter Disposal dialog in the asset module.

Related topic: Business and capital asset sale information FAQs (1040)

Share This