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Onvio Fixed Assets will automatically populate the Disposal tab with the relevant fields after you select Sold / Scrapped as the method of disposal.

Follow these steps to place an asset out of service.

1. Open the asset in Onvio Fixed Assets, then open the Disposal tab
2. Select Sold / Scrapped from the Disposal Method drop-down.

Onvio Fixed Assets automatically selects 1245 - Trade or business property or 1250 Real property based on the method/life of the asset.

• Onvio does not automatically handle exchanges involving non-qualifying property; it assumes all losses are unrecognized.
• If you enter an amount in the Expenses related to sale field, Onvio will add it to the cost of the asset for reporting on Form 4797.
• Enter the asset's overall (or lifetime) business use percentage if the asset is listed property or a luxury auto and you entered Sold / Scrapped. The application uses this overall percentage to calculate the basis for the gain/loss calculation only. The percentage does not affect any year's depreciation expense.
• If you take Tax or Book depreciation on other property, Onvio will automatically enter the amount allowed allowed on other property for 1245 assets that were received in trade from a prior like-kind exchange. You can enter your own amount in the Tax Depreciation Taken on Other Property or the Book Depreciation Taken on Other Property field for book purposes if you disagree with the total.

Click the FORM 4797, PART III REAL PROPERTY button to determine where the sale is reported on Form 4797. If you are uncertain about which part of Form 4797 applies, consult the IRS instructions for the form.

• If you don't want the asset reported on Form 4797, select Not reported on Form 4797 from the Type of property field.
• When you enter Form 4797 information for raised cattle, horses, or other livestock sold at a gain, you must make a selection from the Type of Property field.
• To scrap an asset and not report any gain/loss on Form 4797, leave the Gross proceeds field blank and select Not reported on Form 4797 from the Type of property drop-down list.

Click the INSTALLMENT SALE button to enter installment sale information to complete Form 6252.

Click the STATE INFORMATION button to enter 1040 state information about this asset for the following states: Idaho, Iowa, Massachusetts, New Hampshire, Pennsylvania, and Vermont.

Click the STATE/OTHER LKE INFORMATION button to enter the like-kind exchange disposal information for personal property exchange. This button is available only for assets with CA, IA, MN, MA or NH as a treatment for tax years beginning 2018 and later.

Disposal tab