Troubleshooting Lacerte diagnostic ref. 2000274 when entering a bulk sale

When you enter a bulk sale in the Individual module, all assets included in the bulk sale must be the same type of asset. Otherwise, the following critical diagnostic will generate:

• Depreciable asset has a depreciation recapture method (1245, 1250, etc.) that differs from the main asset of the bulk sale in which it is included. For the depreciation recapture to be correctly reported on Form 4797, this asset should be input as a separate sale. (ref. #2000274)

This diagnostic, while critical, isn't a critical e-file diagnostic that would prevent e-filing the return. However, you can fix it by creating a separate bulk sale for Section 1250 property and Section 1245 property.

Follow these steps to create separate bulk sales:

1. Go to Screen 22, Depreciation.
2. Create one bulk sale for the 1250 property (nonrecapture) and one bulk sale for 1245 property (recapture). 
   • The depreciation method used determines the type of property. 
   • If you need assistance entering a bulk sale, refer to this article for instructions.

If the above solution doesn't work, you may need to override all assets as Section 1250 property.

Follow these steps to override all assets as Section 1250 property:

1. Go to Screen 22, Depreciation.
2. Select an Asset from the left navigation panel.
3. Scroll down to the Sale of Asset (4797/6252) section.
4. Under the Miscellaneous subsection, enter a 1 in Blank=1245, 1=1250, 2=1252, 3=1254, 4=1255 [O].