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CCH Axcess Tax

Automatic Sale Feature

Use this option to link information entered on depreciation forms to sales information. This is done through the use of a sales number entered on both forms for a property disposed of during the year.

We compute the recapture of depreciation, the ordinary and capital gains on sales of assets using the sale number. The automatic sale feature relates entries on the Capital Gains and Losses, Schedule D and Form 4797 section of the Gains and Losses worksheet for sales price, recapture type code, and description to the following information from depreciation forms:

• Date Acquired and Sold
• Cost
• Total Depreciation
• Depreciation Not Subject to Recapture (1245)
• Depreciation Subject to Recapture (1245)
• Excess Depreciation from 1/1/70 through 12/31/75 (1250)
• Excess Depreciation After 12/31/75 (1250)
• Section 179 Expense
• ITC Basis Adjustment

Do not enter a sale number unless using this feature. You may use any sale number up to four digits, but it must be the same as the sale number entered on the related depreciation form. We cannot compute Section 1245 or 1250 recapture depreciation or gain correctly if the prior year depreciation was not computed according to the current year method.

Required Entries for Automatic Sale

Required Gains and Losses worksheet Entries for Automatic Sale

• Description
• FS Code - If applicable
• Property Type
• Sale Number
• Classification Code - If applicable
• Gross Sales Price

Required Gains and Losses worksheet Entries for Automatic Sale (Casualty)

• Description
• FS Code - If applicable
• Casualty Property Type
• Sale Number
• Classification Code - If applicable
• Gross Sales Price/Reimbursement
• 4684 Number - If applicable
• Fair Market Value before Casualty
• Fair Market Value after Casualty
• Cost of Replacement

Required Depreciation Entries for Automatic Sale

• Date Placed in Service
• Method *
• Life *
• Cost
• Accumulated Depreciation
• Section 179 and ITC Basis Reduction - If applicable
• Sale Number
• Date Sold

Bulk Sale

You may link a sale on Gains and Losses worksheet to several depreciation properties. If the assets were purchased or placed in service on different dates, the holding periods may not be correct. Do not attempt to use the automatic sale feature using a single sale for several depreciation assets if:

1. Some assets qualify for short-term holding period and others qualify for long-term.
2. Some assets qualify for Section 1245 treatment and others qualify for capital gain or Section 1250 treatment.