Reporting the casualty or theft of an asset (1040)

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Question

What input screens are used to report the casualty or theft of an asset?

Answer

The following input screens report the casualty or theft of an asset.

  • 4684B screen: Use this screen to enter a current-year casualty or theft of business and income producing property. Information entered in this screen will be reported on Form 4684, Page 2. If the replacement property is not purchased in the year of the casualty or theft, information on this screen will proforma to the 4684PY screen.

    Note: The default data entry for Section B of 4684 is in the disposal tab, in the asset module, when the Method is Casualty / Theft. You can access the 4684B screen by disabling the asset module under File > Client Properties > Advanced Properties > Enter Asset Detail tab.

  • 4684P screen: Use this screen to enter a current-year casualty or theft of personal use property. Information entered in this screen will be reported on Form 4684, Page 1. If the replacement property is not purchased in the year of the casualty or theft, information on this screen will proforma to the 4684PY screen.
  • 4684PY screen: Use this screen to enter replacement information for a casualty or theft of business and income producing property that occurred in a prior year. Per Publication 547, a statement should be attached to Form 4684, line 22 for the year in which the replacement property was acquired. The statement should contain detailed information about the replacement property. The Replacement Information for Prior Year Casualty/Theft section on the 4684PY screen is used to generate this statement.
  • CasPY screen: Use this screen to enter replacement information for a casualty or theft of personal use property that occurred in a prior year. Per Publication 547, a statement should be attached to Form 4684 for the year in which the replacement property was acquired. The statement should contain detailed information about the replacement property. The CasPY screen is used to generate this statement.
  • Ponzi screen: Use this screen to enter a current year theft loss related to a fraudulent investment arrangement using Revenue Procedure 2009-20 procedures. Fraudulent investment arrangements are commonly referred to as Ponzi schemes. Information entered in this screen will be reported on Form 4684 page 3.

Notes

  • If replacement property is not acquired within the replacement period including extensions, or if the replacement property is acquired at a cost less than the amount received, an amended return must be filed for the tax year of the gain. No gains calculated in the 4684PY or CasPY screen will be reported on the current-year return. A diagnostic message displays to amend the original return in this situation.
  • UltraTax CS provides a client-specific option to specify the method of entering asset information: you can either enter it in the asset module or in the various depreciation screens. If you choose the asset module as the method of data entry, the 4684B screen is not applicable and does not appear. To enter asset information using the 4684B screen, choose File > Client Properties, click the Advanced Properties button, and clear the Enter asset detail information checkbox in the Enter Asset Detail tab to turn off the detailed asset information default. See Where do I enter asset data? for more information.

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