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Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

Question

How is the gain or loss on disposal of section 179 assets reflected on the shareholder basis worksheet?

Answer

UltraTax/1120 calculates the S Corporation's gain or loss on the disposal of assets for which a section 179 expense deduction was previously passed through to the S Corporation shareholder. The shareholder's share of the net gain or loss transfers to the Shareholder's Basis Worksheet when you enter X in the Transfer gain (loss) on disposal of Section 179 assets… field in Screen KSep.

UltraTax/1120 transfers a net gain on disposal of section 179 assets to the applicable line on page 1 of the Shareholder's Basis Worksheet. A net loss on disposal is transferred to the applicable line on page 2 of the Shareholder's Basis Worksheet.

If you want to change the amount of net gain or loss on disposal of section 179 assets that is shown on the Shareholder's Basis Worksheet, enter an amount in applicable force fields on the Stock tab in View > Shareholder Information > Other Info tab > Shareholder Basis.

Related topic: 1120-US: Shareholder basis calculations FAQs

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