UltraTax CS: Proforma of qualified real property installment sale (FAQ)

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Question

Qualified real property disposed of in a gain was transferred from the asset module as an installment sale in the year of sale. How does UltraTax CS proforma that information?

Answer

When the asset is sold, the asset module transfers the sale information to two units of Screen Sale and applies the 1245 / 1250 percentage to all the amounts. UltraTax CS proformas each Screen Sale (for 1040 and 1120 returns) or Screen SalePT (for 1065 returns) to separate Screens InstPY (for 1040 and 1120 returns) or Screens SalePT (for 1065 returns). The 1245 / 1250 percentage proformas to the Qualified Real Property Section 1245/1250 Percentage field and UltraTax CS proformas an X to the Apply Qualified Real Property Percentage to current year payments received field. This allows the full amount of the current-year payment to be entered in both Screens InstPY (for 1040 and 1120 returns) or Screens SalePT (for 1065 returns). Since only one asset was sold, UltraTax CS assumes the client will generally provide one amount received on the installment.

Related topic: Qualified real property FAQs

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