Retire part of an asset and keep the rest depreciating. A roof on a building. Three of ten identical units.
Where this is in the app
Dashboard → open the return → Assets tab → open the asset → Dispose → Dispose part of this asset
New to the disposal screen? Start at Record a disposal.
On the Dispose asset screen, click Dispose part of this asset. The product splits the asset and disposes the portion you name, behind one confirmation.
Steps
Click Dispose part of this asset. The button's helper text reads "E.g. sold 3 of 10 units — the rest keeps depreciating."
Decide whether to record a partial disposition election. A checkbox reads Record a partial disposition election (§1.168(i)-8). It is offered on every partial disposal and is off unless you check it. See below.
Choose how to measure the portion. Under the label "How do you want to measure the portion?", a three-button group: Percentage, Dollar amount, Units.
Enter the portion. Percentage takes Portion disposed (%), described as "Greater than 0% and less than 100% — use the regular full disposal for 100%." Dollar takes Cost amount disposed ($). Units takes Units disposed and Total units.
Name the two pieces. Remaining asset description is prefilled with the current name and editable. Disposed portion description is optional; left blank it becomes the asset's name followed by "(disposed portion)".
Fill in the disposal date, proceeds, and disposition kind as you would for a full disposal.
Click Dispose portion.
The two previews
An Allocation table appears showing the disposed piece first and the retained piece second, tagged "(disposed)" and "(kept)". Its columns are Cost and Prior Depr., plus a §179 column when either piece has one, and it closes with a Total (= today's asset) row. Every column sums back to what the asset holds now.
The Gain/Loss Preview alongside it is tagged Estimated and describes the disposed portion only, not the whole asset.
Nothing is committed until you click the button.
Recording the election
Check Record a partial disposition election (§1.168(i)-8) and the entry changes:
The measurement buttons disappear. Entry is dollars only, relabelled Disposed component basis ($), described as "The unadjusted basis of the retired component, determined by your reasonable method."
A Reasonable method dropdown appears and is required. Options: PPI-discounted replacement cost, Pro-rata, Cost segregation study, Other. It opens on "— Select a method —", and leaving it there is only refused when you press the commit button, which answers "Choose a reasonable method for the partial disposition election before confirming."
A free-text Substantiation box appears. It is optional.
The commit button becomes Record election & dispose.
The panel states: "Your method and substantiation are captured here and included when you export this asset's records. You remain responsible for the election's substantiation on the filed return."
The election is offered, never assumed. Whether to make it is your call.
When partial disposal isn't offered
The Dispose part of this asset button is disabled and reads "Not available for this asset — see why below." An amber panel headed Partial disposal isn't available for this asset lists the specific blocking reasons for that asset, and closes with "Full disposal of the entire asset is still available."
The reasons are the same ones that block a split. See When an asset cannot be split.