In ProConnect Tax, a sale or disposition of assets can be entered in the Dispositions (Schedule D/4797/etc. screen) or the Depreciation screen. Click on the screen you want to use below to view instructions on entering the item.
To enter a sale in the Dispositions screen
- Go to the Dispositions or Schedule D/4797/etc. screen:
- 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
- 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
- Go to the Depreciation (4562) screen:
- Individual: Deductions > Depreciation
- Partnership: Ordinary Income > Depreciation (4562)
- Corporation: Deductions > Depreciation
- S-Corporation: Ordinary Income > Depreciation (4562)
- Fiduciary: Deductions > Depreciation
- Exempt organization: Expenses > Depreciation
- 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.
- 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.
Specific scenarios
In most cases cryptocurrency or virtual currency is reported on the tax return in the same manner as property such as stock or other capital gains or losses. See Frequently Asked Questions on Virtual Currency and Digital Assets Transactions for the IRS guidelines. If you are reporting Digital Assets transactions in the 1040 return, be sure to mark the Yes box on the "At any time during 2023, did you: (a) receive (as a reward, award, or payment for property or services); or (b) sell, exchange, gift, or otherwise dispose of a digital asset (or a financial interest in a digital asset)?" question.
Related topics
- How do I enter a like-kind exchange in the depreciation screen?
- Reporting a sale of home on an individual return
- Entering a Bulk Sale
- Form 4797 Input for Sales of Business Property
- Entering disposition information from K-1 to Form 4797 Part II, line 10
- Generating a partial disposition from the deprecation input or adjust depreciation
