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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 are qualified real property assets disposed of in a gain transferred from the asset module into UltraTax CS?

Answer

Per Notice 2013-59 Election to expense costs of real property placed in service in tax years 2010-2013, 2013-40 IRB 297 -- IRC Sec(s). 179, to the extent unadjusted basis of qualified real property is reduced by the section 179 deduction, the amount of that reduction is treated as section 1245 property with the remaining unadjusted basis treated as section 1250 property. When a qualified real property asset with unadjusted basis partially reduced by the section 179 deduction is disposed of in a gain, two units of Screen Sale (for 1040, 1120, and 990 returns) or Screen SalePT (for 1065 returns) will be transferred to UltraTaxCS. The applicable 1245 / 1250 percentage will be applied to the transferred amounts. The Section 1250 property checkbox will indicate which screen represents the 1250 portion of the sale. Thus, the disposition will be reported as two separate assets on Form 4797.

Related topic: Qualified real property FAQs

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