Sale of Patent

[Randall]

I understand sale of a patent is a capital gain.  With ATX, 1065 return, when I use disposition of asset, force 4797 Part I long term, the gain goes to 4797 Part I, line 7.  But it does not flow to Sch D.  How do I get it to flow to Sch D and show as long term capital gain?  Do I mark the disposition in Fixed Assets as 'Do not calculate gain' and input the sale directly in the Sch D input section?

 

 

[Catherine]

8 hours ago, Randall said:

I understand sale of a patent is a capital gain.  With ATX, 1065 return, when I use disposition of asset, force 4797 Part I long term, the gain goes to 4797 Part I, line 7.  But it does not flow to Sch D.  How do I get it to flow to Sch D and show as long term capital gain?  Do I mark the disposition in Fixed Assets as 'Do not calculate gain' and input the sale directly in the Sch D input section?

 

 

Not sure about ATX any more, but yes it should go on Sch D so that is what I would do.  Your mileage may vary.  

[Randall]

10 hours ago, Catherine said:

Not sure about ATX any more, but yes it should go on Sch D so that is what I would do.  Your mileage may vary.  

ATX puts it on the 1231 line on Sch K and Sch K-1.  However, when entering on the personal return, the 1231 goes to Sch D of the 1040.  For the 1065, I have the disposition tagged as long term going to 4797 Part I.