partial disposition of business property

[rsnell5078]

My client had part of her land taken by the highway department for expanding the road and made 272 on that portion of the land.  How do I report that (it's a business property)?

[Terry53029]

It is reported as a sale, 

[rsnell5078]

When I put the sale in the disposition part, it takes a loss on the whole value of the land.  I can't figure out how to tell it that it was only a fraction of the asset.

[Terry53029 · Accepted solution]

Just put it on the 4797 part one not on the asset sheet

[rsnell5078]

Thanks, that's what I will do.

[32Singer]

If this is on form 4797, how does it change the amount in the Depreciation schedule

[dkh]

You'll have to manually make an adjustment to the cost.  I would use a supporting statement to note the original cost and the date, amount, and reason for a reduction.