This is archived information that pertains only to the 2006 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.
To show losses, enclose figures in (parentheses).
If you disposed of property you acquired by inheritance, enter “INHERITED” in column (b) instead of the date you acquired the property.
Disposition by a Partnership or S Corporation of Section 179 Property
Partners and S corporation shareholders.
If you received a Schedule K-1 from a partnership or S corporation reporting the sale, exchange, or other disposition
of property for which a
section 179 expense deduction was previously claimed and passed through to its partners or shareholders, you must report your
share of the transaction
on Form 4797, 4684, 6252, or 8824 (whether or not you were a partner or shareholder at the time the section 179 deduction
was claimed).
See the worksheet on the next page to figure the amount to report on Form 4797, 4684, 6252, or 8824, and to figure
any reduction in your
carryforward of the unused section 179 expense deduction. The partnership or S corporation must provide the following information
on Schedule K-1 for
the transaction.
-
Description of the property.
-
Date the property was acquired and placed in service.
-
Date of the sale or other disposition of the property.
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The partner's or shareholder's share of the gross sales price or amount realized. Enter on line 1 of the worksheet.
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The partner's or shareholder's share of the cost or other basis plus the expense of sale. Enter on line 2 of the worksheet.
-
The partner's or shareholder's share of the depreciation allowed or allowable, but excluding the section 179 expense deduction.
Enter on
line 3a of the worksheet.
-
The partner's or shareholder's share of the section 179 expense deduction passed through for the property and the partnership's
or S
corporation's tax year(s) in which the amount was passed through. Enter on line 3b of the worksheet your share of the total
amount of the section 179
expense deduction passed through for the property (even if you were not a partner or shareholder for the tax year in which
it was passed through or
you did not deduct all or part of the section 179 expense because of the dollar or taxable income limitations). The tax year(s)
in which the amount
was passed through are provided so you can determine the amount of unused carryover section 179 expense (if any) for the property
to report on
line 3c.
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If the disposition is due to a casualty or theft, a statement indicating so, and any additional information needed by the
partner or
shareholder to complete Form 4684.
-
If the disposition was an installment sale made during the partnership's or S corporation's tax year reported using the installment
method,
any information needed by the partner or shareholder to complete Form 6252. The partnership or S corporation also must separately
report the partner's
or shareholder's share of all payments received for the property in the following tax years.
-
If the disposition was a disposition of property given up in an exchange involving like-kind property made during the partnership's
or S
corporation's tax year, any information needed by the partner or shareholder to complete Form 8824.
Note.
If you have a carryforward of unused section 179 expense deduction that includes section 179 expense deduction previously
passed through to you for
the disposed asset, you must reduce your carryforward by your share of the section 179 expense deduction shown on Schedule
K-1 (or the amount
attributable to that property included in your carryforward amount).
Partnerships and S corporations.
Partnerships (other than electing large partnerships) and S corporations do not report these transactions on Forms
4797, 4684, 6252, or 8824.
Instead, they provide their partners and shareholders the information they need to report the transactions. See the instructions
for Form 1065 or Form
1120S for details on the information that must be reported on Schedule K-1.
Enter on line 1 the total gross proceeds from:
-
Sales or exchanges of real estate reported to you for 2006 on Form(s) 1099-S (or substitute statement) that you are including
on line 2, 10,
or 20 and
-
Sales of securities or commodities reported to you for 2006 on Forms 1099-B (or substitute statements) that you are including
on line 10
because you are a trader with a mark-to-market election under section 475(f) in effect for the tax year. See Traders Who Made a Mark-To-Market
Election on page 2 and the instructions for line 10 on page 6.
