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It's been a while since I had an installment sale to do, and I've never done one with capital assets or depreciation recapture. It's the sale of a business with 4 assets, one a partially depreciated truck, and two of the others (business name and goodwill) are capital assets. I did a 6252 for each asset, linking each one to the Schedule C. Two questions:
1. Depreciation recapture calculated correctly on 6252 and carried to 4797, part II, but there's no 4797, page 2, part III. Shouldn't ProSeries generate page 2?
2. Gain on capital assets is calculated correctly, but there's no Schedule D. Shouldn't ProSeries generate Sch D?
Any advice deeply appreciated!
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Have you entered the principal and interest taxpayer paid in 2023 on F6252 ?
If I remember correctly - the ordinary income portion attributed to the truck won't qualify for installment sale. Only capital gain amount, if there was any.
What was asset #4. Asset #1 Truck Asset 3&4 business name and goodwill.
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Thanks for your reply, dkh. My main concern is whether I need to be filing a Sch D and a Form 4797 page 2. I would have thought that PS would generate them, but it hasn't.
To answer your questions:
Yes, I've entered amounts paid. (BTW, this is a 2022 return.)
You're right about the truck. All the depreciation recapture is taxable in 2022.
The other asset is a noncompete agreement - ordinary income.
