Entering a mass asset disposition

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A mass disposition is a means of recording the sale or trade of two or more assets in a single transaction. To record the sale of multiple assets for one sale price, the like-kind exchange of multiple assets for one asset, or the disposal of multiple assets by the Out of Service or Retired method, perform the following steps.

  1. Open the desired client and, if necessary, click an activity folder.
  2. Choose Tasks > Mass Dispositions or click the Mass Disposition button in the Asset List window.
  3. In the Mass Disposition dialog, click the Add button to open the Add Mass Disposition dialog.
  4. Enter a brief description of the disposition (such as "Sale of Office Equipment"). This description prints on the disposal report.
  5. Click Continue to open the Select Assets dialog.
  6. In the Select Assets dialog, if you are disposing of Partnership or S Corporation assets and want to include section 179 assets in the list of available assets, mark the Include Section 179 assets as available assets checkbox and select an option to allocate disposal information based on cost or adjusted basis.

    Note: The Section 179 assets group box is available only for Partnership and S Corporation assets.

  7. In the Assets available to select pane on the left, highlight the assets to be included in the mass disposition, then click the Select button.

    Note: Use the fields in the Focus asset listing group box to limit the list of available assets to those that are assigned to a specific group, location, or other association value.

  8. Click Continue to open the Enter Disposal Information dialog.
  9. Do one of the following tasks.
    • Click the Method/Life Wizard button button to the left of the Method field to open the Disposal Wizard. The wizard guides you through the disposal process and provides on-screen explanations of the fields and options.
    • Choose the appropriate method of disposal from the Method field. Fields appear in the Disposal tab that are appropriate for the chosen method of disposal.

      Note: See Disposal methods for details on each method of disposal.

  10. The steps to finish entering the disposal information vary depending on the method of disposal you chose in the previous step. Click the asset's method of disposal to view information specific to that method.

    Note: For details about all fields that are available for the Sold / Scrapped disposal method, see Sold / scrapped disposal method.

    Form 4797

    From the Type of property field, select the type of property to determine where the sale is reported on Form 4797. To complete Form 4797, Part III, click the Form 4797 Part III Real Property button and complete the applicable information regarding section 1250, 1252, 1254, and 1255 assets.

    If you don't want the asset reported on Form 4797, select Not reported on Form 4797 from the Type of property field.

    If the assets were not used in trade or business, select Not used in trade or business from the Type of property field. 

    Current-year installment sales

    To enter information regarding current-year installment sales, including related party information, click the Installment Sale button and complete the applicable information.

    Income classification (990 clients only)

    To enter income classification information, click the Income Classification button. This button does not appear unless the client is a 990 client.

    Additional data entry is not required for this disposal method. Depreciation will not be taken after the date placed out of service. The asset remains on file until the disposal method is changed to Casualty / Theft, Sold / Scrapped, or Like-Kind Exchange.

    Additional data entry is not required for this disposal method. Depreciation will not be taken in the year of retirement or any subsequent year. The asset remains on file until the disposal method is changed to Casualty / Theft, Sold / Scrapped, or Like-Kind Exchange.

    Apply separate passenger auto limits when electing out of Reg. 1.168(i)-6

    To apply separate passenger auto limits when electing out of Reg. 1.168(i)-6, mark the Apply separate passenger auto limits when electing out of Reg. 1.168(i)-6 checkbox in the Setup > Options > Calculation tab before entering the trade. Note that this setting applies only to trades that are entered after the checkbox is marked.

    Related party exchange

    If this exchange was with a related party, click the Related Party button and enter the applicable related party information.

    Transfer of disposal information

    Like-kind exchange disposal information transfers to the return in UltraTax CS. However, you may need to enter additional information on Form 8824.

Note: If you copy assets that were part of a mass disposition, the application creates an individual disposition for each asset in the new client or activity. To re-create the original mass disposition, choose Tasks > Mass Dispositions, select and delete the extra dispositions that the application created for each asset, leaving only one instance of the mass disposition.

Disposing of multiple assets (approx. 2.5 minutes)

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