Asset disposition from empty class / S8 / S6

T2
1

Client disposed of a leftover asset this year from a Class that was cleared out on S8 last year. All of the recovery is a therefore a Recapture. TC then sets a reminder to fill in S6…but with the recapture reported on S8 there is no entry in S6 required. (The amount for Gain on Disposition on the F/S is, of course, deducted on S1 already, line 401; the Recapture flows from S8 to the S1 line 107.)

Am I missing something?

2

You’d only report a gain above the recapture. Sounds fine to me.

3

Thanks - thought I was losing my mind. I’ll take the note from TC as “just a reminder” if needed.

4

Since TC doesn’t know whether the proceeds are more than the cost, it just lets you know that the GIFI has a gain/loss on disposal and that you should review whether S6 should be filled in or not.

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