Entering Data for an Asset Sale In Lacerte

Forum|Forum|5 years ago
February 15, 2021
1 reply
16 views

I have a client that has sold the business and we are treating the business as an asset sale. I have allocated the purchase price to the individual assets and entered this on the asset disposition page of Lacerte for the LLC. When I look at the forms, the K-1's show ordinary income instead of long-term capital gain. What am I doing wrong?

Lacerte Tax

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Best answer by George4Tacks

Are you filing Form 8594?

Is there depreciation recapture on the sale of assets?

What asset would you expect to have long term gain?

George4TacksAnswer

Level 15

Are you filing Form 8594?

Is there depreciation recapture on the sale of assets?

What asset would you expect to have long term gain?

Answers are easy. Questions are hard!

J

Jay WettigAuthor

Level 2

Yes, there is depreciation recapture. Would there be a better way to show this sale than a sale of assets in order to show all the gain as long-term capital gain?

sjrcpa

Level 15

Gain is ordinary to the extent of depreciation taken. Also sale of inventory, AR would be ordinary, too.

The more I know the more I don’t know.

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