Sec 179 Sale of Asset

Forum|Forum|5 years ago
August 26, 2021
7 replies
51 views

Why is it calculating a gain of only the difference between the purchase and sale price, when the asset was fully depreciated using Sec 179?

Example: Asset purchase price was $5700 and took section 179 and then sold a few years later for $6,000 and it is showing a $300 gain. Shouldn't the basis be zero?

Also, not showing up on F4797...

ProSeries Professional

This topic has been closed for replies.

dkh

Level 15

Are you preparing a 1040 return or 1120S or 1065..... ?

C

coralliAuthor

Level 3

Sorry, should of mentioned that. It is a partnership F1065.

dkh

Level 15

Yes being a Form1065 makes a difference to the answer........I agree with @JRC

JRC

Level 7

The 179 gain will be reported on Schedule M-1 of Form 1065 and will be reported on a K-1 179 Report for each Partner.

T

Terry53029

Intuit Community Champion

For a partnership for assets that are sold that the 179 was taken, you do not fill out the 4797 on the partnership return, as it is filled out on the partner level (1040) If you fill out the asset work sheet on the 1065, and fill out the sale info ProSeries will do the rest for you. As a side note you have a $300 gain that is 1245 gain reported as ordinary income

abctax55

Level 15

As @JRC & @Terry53029 have pointed out:

The $ 300 shows on the F 1065, page one.

The REST of the gain shows as supplemental info, passed out via the K-1, and will show up on the F 1040 of the partner.

It's the same presentation as when the § 179 expenses was taken in the first place.

HumanKind... Be Both

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