Specific Instructions

Note.

To show losses, enclose figures in (parentheses).

If you disposed of property you acquired by inheritance from someone who died in 2010 and the executor made the election to file Form 8939, Allocation of Increase in Basis for Property Acquired From a Decedent, special rules apply. See Pub. 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010, for more information.

If you disposed of property you acquired by inheritance from someone who died before or after 2010, enter “INHERITED” in column (b) instead of the date you acquired the property. Also report the sale or exchange that way if you inherited the property from someone who died in 2010 and the executor of the decedent's estate did not elect to file Form 8939.

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).

  Use the worksheet, later, 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.

  • The partner's or shareholder's share of the gross sales price or amount realized. Enter this amount on line 1 of the worksheet.

  • The partner's or shareholder's share of the cost or other basis plus the expense of sale. Enter this amount 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 this amount 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.

  • 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.

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).

Note.

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.

Line 1

Enter on line 1 the total gross proceeds from:

  • Sales or exchanges of real estate reported to you for 2013 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 2013 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,earlier, and the Instructions for line 10, later.


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