I have a rancher that sold all his livestock because of drought. How do I defer the gain in Pro Connect? The livestock are on the deprecation schedule.

Forum|Forum|3 years ago
February 15, 2023
1 reply
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The gain shows up on Form 4797 page 2 when I input the disposition on the depreciation page. Is this an off the return tracking? How do I stop the depreciation on the sold assets if it is off the return?

ProConnect Tax

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George4Tacks

Level 15

You need to refer to all of the IRS information for the specifics of how to defer. I believe you should just input the date of sale, but no sales price. That stops depreciation and removes the assets from the depreciation in the future. You will be able to see the accumulated depreciation on the depreciation schedule and use that to compute the deferral.

You can then do whatever attachment is necessary to show the deferral. I have no expertise there and have not read beyond this page https://www.irs.gov/newsroom/irs-drought-stricken-farmers-and-ranchers-have-more-time-to-replace-livestock

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