How to retire or dispose depreciable assets without a gain or loss

This article will help you dispose of a depreciable asset, and stop depreciation, without recording a gain or loss. First, navigate to the depreciation screen using the instructions below for your return type.

• Individual, fiduciary, and corporate (1040, 1041, 1120):
  • Deductions > Depreciation
• Partnership and S-corporate (1065, 1120S):
  • Ordinary Income > Depreciation (4562)
• Exempt organization (990):
  • Expenses > Depreciation

1. Click the Details button on the desired asset.
2. On the left-side menu, select General Disposition Information.
3. Enter the Date sold, disposed, or retired [MANDATORY].

The program will automatically calculate depreciation for only the portion of the year before the asset was retired. The asset will not proforma (roll over) to next year's return.

Related topics

• Entering a sale or disposition of assets in ProConnect
• Reporting a sale of home on an individual return in ProConnect
• Entering a disposition of rental activity with multiple depreciated assets in ProConnect Tax
• Using ProConnect Tax as a fixed asset manager