Reporting ordinary loss on redemption of contingent debt instrument

Forum|Forum|5 years ago
March 2, 2021
1 reply
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Fidelity statement reporting ordinary loss on redemption of contingent debt instrument. How is this reported in Lacerte? I can see an old posting under ProSeries but it points to Sales of Business Property, which this is not, and doesn't help a Lacerte user. I can't see any boxes under Dispositions that would classify this portion of the disposition income as "ordinary" instead of capital.

Thanks in advance,

Kathy

Lacerte Tax

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Best answer by PhoebeRoberts

Like that old posting, I run it through the 4797 to make it ordinary. In the 4797 section of Screen 17.1 Dispositions, enter a -1 for depreciation allowed.

PhoebeRoberts

Answer

Intuit Community Champion

Like that old posting, I run it through the 4797 to make it ordinary. In the 4797 section of Screen 17.1 Dispositions, enter a -1 for depreciation allowed.

K

kklundAuthor

Level 2

Thank you, Phoebe! I see how this works now. Really appreciate your taking the time to respond.

Kathy

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