Using the Sale Number Box

The "Automatic Sale" feature carries date placed in service, date sold, asset cost, total depreciation, excess depreciation from December 31, 1969 through December 31, 1975, and excess depreciation after December 31, 1975, to a corresponding entry made on the Gains and Losses worksheet for Schedule D or Form(s) 4797, 4684, 8824 and 6252 for each asset sold. Please refer to the "Sale/Exchange of Assets" instruction guide section for additional information.

Enter a number, up to four digits, in the "Sale Number" field and also a "Date Sold" entry onthe Depreciation and Amortization section for each asset sold. Enter the identical sale number in the "Sale Number" field of the Gain and Losses worksheet, Other Capital Transactions section, Business Property, Casualties and Thefts section, Installment Sales worksheet, and Like-Kind Exchanges worksheet to tie the information together. Do not make entries in this field unless the "Automatic Sale" feature is being used.

Make the following entries on the Depreciation and Amortization section to compute depreciation correctly:

Date Placed In Service
Date Sold
Cost
Method
Life/Rate
Accumulated Depreciation

Caution: Accumulated depreciation must be computed in strict accordance with the depreciation method entered. If not, the computations may be incorrect. Also, if the business use percentage of the asset varied during the life of the asset the computations may be incorrect unless the Business use accumulated depreciation field and Business use accumulated AMT field are used.

Note: Bulk Sales - More than one asset from the Depreciation and Amortization section can be included in a single sale if all assets have the same holding period and property classification. Simply enter the same "Sale Number" on the Depreciation and Amortization section for each asset as entered on the Gain and Losses worksheet, Other Capital Transactions section, Business Property, Casualties and Thefts section, Installment Sales worksheet.

Note: When using the "Automatic Sale" feature, an entry of "999999" in the "Date Placed in Service" field or negative entries in the "Cost," "Accumulated Depreciation" and "Current Depreciation" fields are not valid entries.