Verify the presence of Section 179 on any assets in a sale or group sale, by doing the following:
- Open Interview Form DP-1 - Federal Depreciation and Amortization.
- Verify that Box 67 - Section 179/Bonus is blank.
- If any of the assets in a sale or group sale have Section 179, the sale will display as a statement attached to the Federal Schedule K and Schedule K-1. It is not included in Form 4797.
- If the sale is a group sale that includes assets that have Section 179 and assets that do not have Section 179, the best course of action is to create two separate sales with unique sale numbers.
- If sale is not showing up on Form 4797 due to section 179 recapture options in a 1065 or 1120S return, Use form D-2 box 47 to show those assets in Form 4797.
- If this is a consolidated return D-2 box 47 will need to be checked at the consolidated return level as well as the separate company level.