Form 4797 Asset Disposition

[Terry D EA]

S-Corp manufacturing client of sold and disposed fixed assets that totals around 200. Is it possible to make one entry on form 4797 for the total and attach a worksheet that shows the dispostion breakdown of all of these assets with the tax return? I have spent a very significant amount of time making journal entries in thier QB file and really would like to reduce the amount of time needed to make the entries on the tax return. The worksheet that I am speaking of is an excel spread sheet with all of the detail.

[Terry D EA]

I was hoping someone has been in this situation that could give me some insight as to how they handled it.

[imjulier]

Funny, I go the other way. Take the time to make all the entries in the tax software and then enter in summary in QB. Also, how you allocate the purchase price can affect the outcome. Maybe someone knows if they have ever taken your approach.

[jklcpa]

I've done it both ways, depending on whether I had the assets entered in ATX or in the other depreciation program I use. If using the depreciation program outside of ATX, it produces the 4562, 4797 and generates the schedules that would be in the return that I could enter data from, so that isn't much different than your excel worksheet. I take it this wasn't a bulk disposition that could speed up your input?

[glgcpa]

This is not exactly the same, but over the years I have had a number of farmers quit and have an auction to sell off all their equipment. This can be pages and pages of auctioner sales sheets. I simply ad up all equipment sales, go to prior years depreciation schedules and pick up AD and cost and put one line on 4797 as "Equipment sold". I've never had one questioned, but have all the detail if it ever happens.

Gerald

[kcjenkins]

I agree with Gerald, have done the same numerous times. I used the 'bulk sale' option in the program, which works well to spped things up.

[Terry D EA]

Thank you to each of you who responded. KC, I am not using ATX so I am not sure if there is a bulk sale option unless this is something available in form 4797. I sure hope so as using this idea will definitely save me a lot of time.

[kcjenkins]

Sorry, Terry, it's in ATX, but since I don't know what program you use, have no idea if you have it. You can still do it on a worksheet, then use the totals on the 4797,

[Terry D EA]

Thanks KC. I am using OneDesk (Oltpro) this year. So far so good. Some quirks or missing functions with business returns and suggestions I have made they plan on doing. I can attach a copy of the worksheet with the return. I am not sure if it will e-file though. I'll check into it.