User's Manual - Drake Software

Drake Software User’s Manual
Sales of Assets
Depreciation
Loss on Schedule C
Figure 5-16: Special tax treatment code drop list on screen C
Use the Depreciation Detail (4562) screen to enter depreciable assets for Schedule C.
Note that on screen C, the Depreciation field is an adjustment field, and that an
amount entered there adjusts the calculated amount from the 4562 screen that flows to
the “Depreciation and section 179 expense deduction” field of Schedule C.
For more on entering depreciation in Drake, see “Depreciation” on page 165.
If Schedule C shows a loss and all investment is not at risk, the program produces
Form 6198, At-Risk Limitations. If part of a loss may be disallowed, enter the
required data on screen 6198. If the taxpayer does not materially participate, the loss
could be limited by Form 8582, Passive Activity Loss Limitations. This is computed
automatically.
e-Filing Schedules C and C-EZ
Sales of Assets
Only one Schedule C-EZ can be e-filed per return, but up to eight Schedule C forms
can be e-filed per taxpayer. If necessary to allow e-filing, keep the short form (EZ)
from being generated by selecting the Suppress EZ path box on screen C.
Screens for entering gains, losses, and sales of assets are listed in Table 5-1. These
screens can all be accessed from the Income tab of the Data Entry Menu.
Table 5-1: Screens for Entering Gains and Losses
Screen
Screen or Form Name
8949 Form 8949, Sales and Other Dispositions of Capital Assets (This screen also
covers Schedule D and Form 1099-B and can be accessed from the selector
field by using the 8949, D, or 99B codes.)
D2
Loss Carryovers and Other Entries (not an IRS form)
2439 Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains
4255 Form 4255, Recapture of Investment Credit
4684 Form 4684, Casualties and Thefts
Tax Year 2012 111