Entering the sale of non-inventory assets for UltraTax/990 clients

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Use this procedure to enter the sale of a non-inventory asset.

To enter data on Screen Sale as described in this procedure, you must use summary asset data entry rather than the asset module. To make Screen Sale available for data entry, choose File > Client Properties, click the Advanced Properties button, click the Enter Asset Detail tab, and then click the Enter asset detail information checkbox to clear it.

  1. Open the desired client (File > Open). Depending on the type of sale, click the Income & Deductions, Direct, or Rent & Royalty folder in the folders block, and then click the tab for Screen Sale.
  2. In the Unit field, enter the activity identification for the sale.
  3. In the Description field, enter the description information for the sale.
  4. In the Sale Information section, enter the date acquired and sold, gross sales price or insurance proceeds received, cost or other basis, commissions and other expenses of sale, and depreciation allowed or allowable, if applicable.
  5. In the Form 4797, Part III - Recapture section, enter recapture information as applicable.
  6. In the Income Classification Information section, enter the following information.
    • From the Method of acquisition field, select a code from the drop-down list that describes the method of acquisition.
    • If the asset was used in an unrelated business activity, select the unrelated business code that best describes the activity. The sale appears on Form 4797, Parts I, II, or III, based on the code you enter in the Force field on Screen Sale.

      If you do not enter a code in the Unrelated business code field, the sale is included in the calculation of Form 990, Form 990-EZ, or Form 990-PF, but not in the calculation of Form 990-T. The sale does not appear on Form 4797.

    • Enter X in the Investment property field if the asset was investment property. This information is necessary for the proper calculation of Form 990-PF. The client entity type must be 990PF (private foundation).
    • If the property was investment property, enter the basis of the asset at the date of disposition; the fair market value of the asset if owned as of December 31, 1969; and the adjusted basis of the asset if owned as of December 31, 1969. This information is used on Form 990-PF, Part IV.
    • If the entity is a section 501(c)(7), (9), or (17) organization that purchased replacement property for the asset sold, the organization may defer a portion of the tax liability of the current sale if it acquired the other property within a specified time period. The Description of property, Date acquired, and Cost or basis fields only apply to sales reported on Form 990-T.
    • If you are reporting gains and losses from the sale of debt-financed property, use the Highest level of debt and Average adjusted basis fields to enter the highest debt level in the last 12 months and basis information. Sale amounts are multiplied by this ratio before transferring to Form 4797.

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