New (tax) year, new help!

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 do I enter the section 1245 and section 1250 portions of current-year payments for a prior-year qualified real property installment sale?

Answer

You can use one of the following two methods to enter current-year payments received on a prior-year installment sale of a qualified real property asset.

• Enter 100 percent of the current-year payment in the Total current year payments received field and enter X in the Apply Qualified Real Property Percentage to current year payments received field. Generally, clients will provide the total current-year payment received, since only one asset was sold. Because Notice 2013-59 requires separate reporting, this method allows the current-year payment amount that the client provides to be entered into both Screens InstPY (for 1040 and 1120 returns) or both Screens SalePT (for 1065 returns). This method is recommended if the asset sale was originally transferred from the asset module.
• Enter the applicable 1245 / 1250 percentage of the payment into the Total current year payments received field. If the screen data was not transferred to UltraTax CS from the asset module in the year of sale, confirm that the 1245 / 1250 percentage was applied to all of the other amounts on the screen. This method is recommended if the asset module was not used in the year of sale.

Related topic: Qualified real property FAQs

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