I disposed of an asset (car) and Turbo Tax for Business said it would ask me later on where to place the income from sale. it diid not. I ahve l;ooked everyhwre and finally entered it in other incom,ce ikncome.

[retailsys]

I was never prompted to enter the sale of the car other than assets disposal.  So I entered it under other Income.  Now it shows on the K-1 as a 1231 gain or loss . According to what I read I see that is fro real property not a sold vehicle.  The car was sold for less that the amount left on depreciation schedule.  Where should I enter the sale amount for that vehicle to report as income.

[Anonymous_]

You need to enter the asset (vehicle) first, of course.

If you have already done so, then return to the Dispose of Business Property section and click Start or Update. Thereafter you will be presented with a screen, as depicted in the screenshot below. Click the Select button to the right of the asset and indicate that it was sold.

[retailsys]

I already did that.  The issue I am having after I completed the section you indicated, TurboxTax said they would later prompt where to enter the sale amount of the car.  It never did.  I added it myself to other income and it now reports to my k1 as 4562 which is a sale of real property real estate.  Once I compelte the Disposition of Asset, Sold; where do I enter the amount the car was sold for.

[Anonymous_]

I am sorry, but I cannot reproduce your result. When I chose "Select", the very next screen is the inquiry screen asking why the asset was no longer being used and one of the choices is "Sold". The very next screen inquires as to the date sold and amount received.

I can only suggest that you delete what you entered (because it is clearly wrong) and start the section for the entry and disposal of the vehicle over again.

[retailsys]

First, I appreciate your help on this.   Very, very small S Corp and doing this myself.  I did do exactly what you said.  See Screen shot.  However the K1 is showing the loss under Box 9 as a 1231 loss.  From everything I read that is real property.   Is a vehicle for this purpose considered real property?  Also do I enter the $12,000 as other income to account for it or did Trubo Tax handle that already for me?

[Anonymous_ · Accepted solution]

@retailsys 

Section 1231 property is real or depreciable property used in a trade or business and held over one year.

See https://www.law.cornell.edu/uscode/text/26/1231

Do not enter the amount you received as other income.