Any disadvantage from using Bulk Sale Feature in Fixed Asset Manager for S Corp Asset Sale

After more research it appears that I will have major issues in ProSeries if I use the FAM multiple asset sale feature. So, I will need to enter the sales information for each asset in FAM. That’s no problem.

However, I’m getting conflicting information regarding the input into FAM. FAM doesn’t deal with installment sale treatment. The sale is  a mixture of equipment and leasehold improvement - some QIP and some 39 year depreciation. 

The instructions in FAM say to enter the allocated sale price and allocated selling expense for each item. The FAM instructions don’t address how to input the sale information if there is an installment sale.

When doing a google search, the instructions are that since FAM doesn’t deal with installment sales, I leave the sale price blank and just enter the date of sale.

The google instructions recommend creating a spreadsheet to separate the equipment sale information, the QIP LH Improvement sale information, and the 39 year depreciation LH Improvement sale information. Also, it is recommended to separate the loss information.

Then the recommendation is that after the FAM information is imported into PS, I need to manually enter the total property type and gain/loss information into F6252 and F4797 instead of checking the 6252 box for each asset entry worksheet in PS.

I want to make sure I don’t create additional issues in PS if I follow the instructions to not enter a sale value or selling cost for each item in FAM.

Does anyone have any FAM/PS instructions for this situation?

Thank you.

I guess nobody uses FAM. I wish now that I never used it. I thought it would be useful for large manufacturing clients.

Tech support isn’t helpful, other than saying that, for an installment sale, you only check the disposal box and enter a date.  There are no articles or instructions on how to enter the asset installment sale in PS after FAM is imported into PS. I am only getting instructions from AI, which is scary.

I thought that after the import into PS that I would be able to enter the sale price and allocated selling costs for over 200 asset entry worksheets and check the 6252 box. However, AI cautions against doing this and says that I need to manually prepare form 6252 for all the assets sold.

I have never manually prepared F6252. It’s not clear how I need to enter all the information, after reviewing the PS F 6252 instructions and the IRS F6252 instructions.

AI recommends manually preparing F6252 by creating an excel spreadsheet with all the gain/loss calculations for each category of assets sold - LH Improvements, M&E, Sec. 179, gains and losses, etc. 

I hope someone who has dealt with this issue can help give some guidance so I don’t waste a lot of time and still have problems completing the S Corp tax return.

Is it fine to enter a description on F 6252 such as, Machinery & Equipment and a total amount and attach a pdf of the excel spreadsheet showing the detail of the amount reported? The instructions don’t address this.

Also, am I understanding the instructions correctly that I need to enter every Sec. 179 asset sold instead of entering total amount and attach a spreadsheet showing the detail?

I’m hoping that someone who uses FAM and has handled an installment sale can help with this. I’m wondering if it will save time and be less of a headache if I don’t use FAM for 2025 and, instead, enter every asset directly in PS and record the installment sale directly in PS. 

Thank you for your help.

Yes you can group by type. Ordinary income/depreciation recapture is recognized in the year of sale-not eligible for installment treatment. Since Section 179 was passed through separately on the K-1s, the sale of assets that used Section 179 also passes through separately on the K-1s.

Thank you, SJR.

Also, won’t losses have to be manually separated since they aren’t eligible for installment sale treatment? And the portion of the gain for Sec. 179 assets that isn’t depreciation recapture will need to be manually separated since those are eligible for installment gain treatment, correct?

When I enter the total amount of a type of asset on F6252, do I need to attach the supporting spreadsheet? Or, is the spreadsheet only needed in case of an IRS audit?

It seems like a lot of manual work to complete the forms. I’m guessing that you have manually prepared the F6252, F 4797 and other related forms in the past for a company’s asset sale agreement. Is it a pain to manually complete the forms? I’m wondering if I should enter all 200+ assets directly in ProSeries and report the disposal and installment sale option on each asset entry worksheet - to save time in the long run and have less headaches.

Thanks for your help.

I would not attach the supporting spreadsheet. Keep for your file. And I would not enter 200 assets in ProSeries. Lacerte has the benefit of being able to group assets for a disposition. And if the assets are not in Lacerte, I use the mass disposition - for as many groups as I need- from Fixed Assets CS. I don’t use ProSeroes or FAM.