Reporting related party transactions in ProConnect Tax

Currently, you can only report related party transactions in ProConnect Tax using Form 8824, Like-Kind Exchanges or Form 6252, Installment Sale Income. You can enter this information on the Dispositions or Deprecation screens. Select your module below for instructions.

Sometimes Part III of Form 6252 will not generate. This can be caused by a couple of things. There are circumstances when the "Related Part Information" (Form 6252, Part III) will not be completed.

• When the disposition date is over 2 years old. This occurs on a prior year installment sale. (See Form 6252, Line 4 instructions)
• When the final payment was received in the current tax year. (See Form 6252, Part III instructions)
• Note: Lines 29-37 on the Form 6252 will only fill out if line 28 is checked yes.

Table of contents:

Individual

To report as a disposition:

1. Go to Input Return ⮕ Income ⮕ Dispositions (Sch D, etc.) ⮕ Schedule D/4797/etc.
2. Select the Details button for the transaction.
3. Scroll down to Related Party Information (6252 and 8824 only).
4. Complete any applicable fields with information about the related party member.
5. Complete any applicable information under the subsection for the appropriate form.

To report as depreciation:

1. Go to Input Return ⮕ Deductions ⮕ Depreciation
2. Select the Details button for the transaction.
3. Scroll down to Related Party Information (6252 and 8824 only).
4. Complete any applicable fields with information about the related party member.
5. Scroll down to Related Party Disposed of in the Current Year (6252/8824 only).
6. Complete any applicable information under the subsection for the appropriate form.

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Partnership

To report as a disposition:

1. Go to Input Return ⮕ Schedule K ⮕ Dispositions
2. Select the Details button for the transaction.
3. Select the Less Common Scenarios tab.
4. Scroll down to Related Party Disposition.
5. Complete any applicable fields with information about the related party member.
6. Complete any applicable information for the appropriate form.

To report as depreciation:

1. Go to Input Return ⮕ Ordinary Income ⮕ Depreciation (4562)
2. Select the Details button for the transaction.
3. Select the Dispositions tab.
4. Scroll down to Related Party Disposition (6252/8824 only).
5. Complete any applicable fields with information about the related party member.
6. Scroll down to the Related Party Disposed of in the Current Year section.
7. Complete any applicable information under the subsection for the appropriate form.

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Corporate

To report as a disposition:

1. Go to Input Return ⮕ Income ⮕ Dispositions (Sch D/4797/etc.)
2. Select the Details button for the transaction.
3. Select the Less Common Scenarios tab.
4. Scroll down to Related Party Disposition.
5. Complete any applicable fields with information about the related party member.
6. Complete any applicable information for the appropriate form.

To report as depreciation:

1. Go to Input Return ⮕ Ordinary Income ⮕ Depreciation (4562)
2. Select the Details button for the transaction.
3. Select the Dispositions tab.
4. Scroll down to Related Party Disposition (6252/8824 only).
5. Complete any applicable fields with information about the related party member.
6. Complete any applicable information under the subsection for the appropriate form.

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S-Corporate

To report as a disposition:

1. Go to Input Return ⮕ Schedule K ⮕ Dispositions
2. Select the Details button for the transaction.
3. Select the Less Common Scenarios tab.
4. Scroll down to Related Party Disposition.
5. Complete any applicable fields with information about the related party member.
6. Complete any applicable information for the appropriate form.

To report as depreciation:

1. Go to Input Return ⮕ Ordinary Income ⮕ Depreciation (4562)
2. Select the Details button for the transaction.
3. Select the Dispositions tab.
4. Scroll down to Related Party Disposition (6252/8824 only).
5. Complete any applicable fields with information about the related party member.
6. Scroll down to the Related Party Disposed of in the Current Year section.
7. Complete any applicable information under the subsection for the appropriate form.

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Fiduciary

To report as a disposition:

1. Go to Input Return ⮕ Income ⮕ Dispositions (Sch D/4797/etc.)
2. Select the Details button for the transaction.
3. Select the Less Common Scenarios tab.
4. Scroll down to Related Party Disposition.
5. Complete any applicable fields with information about the related party member.
6. Complete any applicable information for the appropriate form.

To report as depreciation:

1. Go to Input Return ⮕ Deductions ⮕ Depreciation (4562)
2. Select the Details button for the transaction.
3. Select the Dispositions tab.
4. Scroll down to Related Party Disposition (6252/8824 only).
5. Complete any applicable fields with information about the related party member.
6. Complete any applicable information under the subsection for the appropriate form.

Back to Table of Contents

Exempt Org.

To report as a disposition:

1. Go to Input Return ⮕ Revenue ⮕ Dispositions
2. Select the Details button for the transaction.
3. Select the Less Common Scenarios tab.
4. Scroll down to Related Party Information (6252 and 8824 only)
5. Complete any applicable information for the appropriate form.

To report as depreciation:

1. Go to Input Return ⮕ Expenses ⮕ Depreciation
2. Select the Details button for the transaction.
3. Select the Dispositions tab.
4. Scroll down to Related Party Disposition (6252/8824 only).
5. Complete any applicable information under the subsection for the appropriate form.

Back to Table of Contents

Refer to Pub 544 and Pub 537 for more information about reporting related party transactions.