Sold Data List

[wjh4848]

A 990 client sold a Data List (Names & Addresses).  This is not what they are in business for (this list was a self generated list).  Where should I input this in Lacerte?

[sjrcpa · Accepted solution]

Other income, and possibly the 990-T

[wjh4848]

Will they have to pay tax on the gain?

Thank you so much for your answer.

[sjrcpa]

If it's unrelated business income.

[wjh4848]

Thank you.

[sjrcpa]

When you research this, consider whether they really sold it or "rented" it for xx uses or x months.

Also look at what type of entity the buyer is.

[wjh4848]

They sold their business list of names and addresses.  They are going out of business next year.  There basis is $0, but they claim it took $5,022 of labor to create.

I put it in 'Unrelated Business Income' in screen 20, giving it a business code of 900099 and an amount of $5,022.  

On screen 1 do I put for 'Type Of Return' 990-T only?