Entering a sale or disposition of assets in ProConnect Tax

In ProConnect Tax, a sale or disposition of assets can be entered in the Dispositions (Schedule D/4797/etc. screen) or the Depreciation screen.

Should I enter my sale in Dispositions or Depreciations?

When you sell or dispose of an asset, you have the choice of entering it into the Disposition screen or the Depreciation screen.

Dispositions are designed specifically to record the sale or disposal of an asset, while the Depreciation screen is designed to track the depreciation of an asset over time.

Generally, it is more appropriate to report the sale in the disposition screen, regardless of how much of the asset's value has been depreciated.

To enter a sale in the Dispositions screen

1. Go to Input Return ⮕ then the Dispositions or Schedule D/4797/etc. screen depending on your tax type:
   • Individual: Income ⮕ Dispositions (Sch. D, etc.)
   • Partnership: Schedule K  ⮕ Dispositions
   • S-Corporation: Schedule K ⮕ Dispositions (D, 4797, etc.)
   • Corporate: Income ⮕ Dispositions (Sch. D/4797etc.)
   • Fiduciary: Income ⮕ Schedule D/4797/etc.
   • Exempt organization: Revenue ⮕ Dispositions
2. Enter the basic information for the sale:
   • Enter the Quantity (if applicable).
   • Enter the Description of Property.
   • Enter the Date Acquired.
   • Enter the Date Sold.
   • Enter the Sales Price.
   • Enter the Cost or Basis.
   • Click the Details button to expand the input screen to enter information such as Expense of sale.
   • Enter any additional information that applies to the disposition.
   • Next, scroll down to the Form 4797 section (if applicable).
   • Enter a "-1" or an amount in the field, Depreciation Allowed (-1 = None, Triggers 4797) (if applicable).

To enter a sale in the Depreciation screen

1. Go to Input Return  ⮕ Depreciation (4562) screen for your tax type:
   • Individual: Deductions ⮕ Depreciation
   • Partnership: Ordinary Income ⮕ Depreciation (4562)
   • Corporation: Deductions ⮕ Depreciation
   • S-Corporation: Ordinary Income ⮕ Depreciation (4562)
   • Fiduciary: Deductions ⮕ Depreciation
   • Exempt organization: Expenses ⮕ Depreciation
2. Enter the information for the asset:
   • Enter the Description of Property.
   • Select the Form from the drop down menu.
   • Select the Activity name or number from the drop down menu.
   • Select the Category from the drop down menu.
   • Enter the Date placed in service.
   • Enter the Cost or Basis.
   • Enter the Current Section 179 (if applicable).
   • Select the Method from the drop down menu.
   • Next, click the Details button to expand the input screen.
   • Locate the Federal Depreciation section.
   • Scroll down and Locate the Regular Depreciation subsection.
   • Enter any Prior depreciation/amortization.
   • Complete any other applicable information about the asset.
3. Scroll down to the General Disposition Information section
   • Enter the Date sold (MANDATORY).
   • Enter the Expenses of sale (if applicable).
   • Scroll down to the Sale of Asset (4797/6252) section.
   • Enter the Sales price.
   • Enter any other information that applies to the sale.