Short answers to the questions that come up first. Each one links to the article that covers it in full.
Where this is in the app
Dashboard → open the return → Assets tab → open the asset → Dispose
For the screen itself, see Record a disposal.
Does the disposition kind change what the product computes?
For four of the nine, yes. Like-kind exchange, involuntary conversion, casualty / theft, and installment sale each open a dedicated step that asks for extra inputs and produces its own figures.
For the other five — sale, abandonment, retirement, gift, and other — the product runs the same arithmetic and labels all of them for Form 4797. Switching between those five does not change a number. See The nine disposition kinds.
Why does the preview show a gain on an asset that lost value?
Adjusted basis is the asset's cost less the depreciation the product has taken on it. Compare the Adjusted Basis row to the Sale Proceeds row and the gain or loss follows from the two.
The rows add up. Accumulated depreciation is listed as the amounts that compose it, and those sum to the Total Accumulated Depreciation row above Adjusted Basis. See Record a disposal.
I sold land. Why is there no recapture?
Because land is never depreciated, so there is nothing to recapture. On an asset whose property type is Land — not depreciated, the preview shows Total Accumulated Depreciation of $0.00 and an Adjusted Basis equal to the original cost. The gain or loss is the proceeds against that basis, and the panel under the breakdown says so: "Land is not depreciated, so there is no depreciation to recapture."
On the Form 4797 mapping page the sale lands in Part I when the land was held more than one year and in Part II when it was held one year or less, with $0 in the depreciation column either way. See Where disposals show up.
Is the asset's salvage value subtracted on a disposal?
No. The disposal breakdown does not subtract a stored salvage value.
Salvage proceeds are entered separately on the casualty shape of the casualty step, in a field called Salvage proceeds realized, and that is what the wreckage actually sold for. If the asset carries a stored salvage estimate, the step shows it and tells you it is not prefilled. The condemnation shape has no salvage field at all. See Record a casualty or condemnation.
Can I dispose of part of an asset?
Yes, where the asset can be split. Click Dispose part of this asset, name the portion, and the split and the disposal happen behind one confirmation. The remainder keeps depreciating on its own schedule. If the asset can't be split, the page lists the specific reasons. See Dispose part of an asset.
Is the §1.168(i)-8 partial disposition election automatic?
No. It is a checkbox on every partial disposal and it is off unless you check it. Checking it switches entry to a dollar amount and requires you to pick a reasonable method. See Dispose part of an asset.
What happens to depreciation after an exchange?
The product proposes a replacement asset in up to two legs: a Continuation (exchanged basis) leg that carries the relinquished asset's schedule, and a New MACRS (excess basis) leg placed in service at the replacement date. You review both, edit the basis and schedule fields, and accept. See Build the replacement asset.
Is the replacement basis computed the same way for §1031 and §1033?
No. Each is computed in its own step, and the figure handed to the replacement preview is different. The like-kind step hands over a carryover basis. The §1033 election hands over a substituted basis, which is not the replacement's cost. Both breakdowns show the derivation line by line. See Record a like-kind exchange and Record a casualty or condemnation.
Can I record a like-kind exchange on equipment?
The §1031 step opens only for real property, meaning a recovery period of 27.5, 30, 39, or 40. On anything else the product shows an amber panel headed "This isn't a §1031 like-kind exchange" with a Switch to sale button.
Use that button. The Record disposal button stays live next to the panel, and pressing it stores the disposal as a §1031 exchange labelled for Form 8824 on an asset that does not qualify. Assets already recorded as like-kind exchanges are shown as they were saved and are not recomputed. See Record a like-kind exchange.
Can I record an installment sale at a loss?
No. The §453 step opens only when the preview shows a gain. On a computed loss the product shows an amber panel headed "An installment sale can't report a loss" with a Switch to sale button, and suppresses the Record disposal button. See Record an installment sale.
Does the product track my installment payments?
No. It computes the year-of-sale figures only: gross profit, gross-profit percentage, contract price, and the recognized-now split. It does not track payments received in later years or apply the gross-profit percentage to them. The step says so in an amber banner. See Record an installment sale.
Are the figures recomputed later?
It depends on the kind.
For a like-kind exchange, casualty, condemnation, or installment sale, the per-form figures are saved when you record the disposal, and the review screen, the report, and the worksheet all read that saved copy rather than recomputing.
For a plain sale and the other direct kinds, the gain, loss, and recapture are computed from the asset each time you open the page or run the report.
Which sheet does a condemnation land on in the worksheet?
The 4797 sheet. An involuntary conversion under §1033 routes to Form 4797, not Form 4684, so it does not appear on the 4684 sheet alongside casualties. See Where disposals show up.
Where do I get everything for the preparer?
The Dispositions worksheet (XLSX) item in the Report tab's Export menu, which appears whenever the return has disposed assets. See Where disposals show up.
Does DepreciationPro file the forms?
No. It computes and labels the figures and hands them over. Preparing and filing Form 4797, 8824, 4684, or 6252 happens in your tax software.