What do I enter into the Asset Entry worksheet for an asset that I have abandoned, trashed. Do I enter the disposition date and zero as the sales price?

[garman22 · Accepted solution]

off the top of my head i would say enter in the date disposed without a sales price and that should eliminate an asset thats been abandoned. 

[IRonMaN]

But if it is abandoned/trashed, I think we want to enter a zero sales price.  I think the "without a sales price" thingy only gets used when we stop depreciating an asset but our bony fingers are still clenched to the asset.

[CEB]

The assets have actually been placed in the dumpster.

[IRonMaN]

You sold it to the dumpster for $0.00.  

[CEB]

I see your point.

[CEB]

When I enter a $0.00 sale price the transaction gets carried over to Form 4797.  Form 4797 is for the "Sale of Business Property".

[IRonMaN]

Yup, you sold it for $0.00.

[garman22]

Thats why I would put no sales price. You could do as @IRonMaN suggested but as you stated, thats what will happen.

[IRonMaN]

But if the asset has any remaining basis, you want to report a disposition on the 4797 to write off the remaining basis.  If there isn't any remaining basis, it really doesn't matter.

[garman22]

I agree with you there, bud. I took the OP's statement as there was nothing left of asset. But I fully agree with you re: basis.

[CEB]

These comments were all very helpful.  Thank you.

[IRonMaN]

:+1: