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Entering disposition of rental activity with multiple depreciable assets

by Intuit Updated 2 years ago

How do you enter a disposition of a rental activity with multiple depreciated assets in Lacerte?

How to enter a disposition of rental activity

There are several ways to dispose of activities in Lacerte, but for assets reported on Screen 22, Depreciation, the easiest way is to enter them as a Bulk Sale:

  1. Go to Screen 22, Depreciation.
  2. Select the primary asset that you want to dispose of (For example, a Rental Home).
  3. Scroll to the General Disposition Information section.
  4. Enter the Date sold, disposed, or retired (MANDATORY).
  5. Enter the Basis Adjustment (if applicable).
  6. Enter the Expenses of sale (if applicable).
  7. Scroll down to the Sale of Asset (4797/6252) section.
  8. Enter the Sales Price (-1 = none). 
    • This is the total sales price for all the assets included in the disposition.
  9. Locate the Miscellaneous subsection.
  10. Enter a 1 or 2 in 1 = complete disposition of passive activity, 2 = partial (triggers 8582).
  11. Select the next Asset that you want to dispose of (For example, Land).
  12. Scroll down to General Disposition Information section.
  13. Enter the Date sold, disposed, or retired (MANDATORY).
  14. Select the main asset from the Bulk sale (multi-asset) disposition: select the asset containing dispositions amount (Ctrl+T) from the dropdown menu. Don't enter any sales information on this asset.
  15. Repeat steps 11–14 for all assets associated with this disposition.

See Generating Form 8582 Passive Activity Loss Limitations for an Individual Return for more information.

Lacerte Tax

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