Take an asset off the register when it has been sold, scrapped, or otherwise left.
Where this is in the app
Dashboard → open the return → Assets tab → open the asset → Dispose
The Dispose button sits in the asset page header, next to Split asset. The page it opens is headed Dispose asset.
What the screen asks
What are you disposing? Two buttons: Dispose entire asset and Dispose part of this asset. If the asset can't be split, the second button is disabled and reads "Not available for this asset — see why below," with the specific reasons underneath. See Dispose part of an asset.
Disposal Date. The helper reads "Must be within tax year 2025," naming the return's year.
Sale Proceeds. The helper text reads "Enter 0 for abandonment or scrap." In partial mode it reads "Proceeds for the disposed portion only."
Disposition Kind. A dropdown with nine options. See The nine disposition kinds.
Check the preview before you commit
A Gain/Loss Preview panel updates as you type. Inside it, a Calculation Breakdown table shows:
Row | What it is |
Original cost | The asset's cost |
Less: Section 179 deduction | Shown when there is one |
Less: Bonus depreciation | Shown when there is one |
Less: Personal-use portion, with the asset's business-use percentage named in the label | Shown only where personal use actually reduced the basis the rates were applied to. A business-use percentage on its own does not put a row here — it is applied further down, against the accumulated total |
Basis adjustment | Shown in place of the row above when something other than personal use accounts for the difference. Signed, and making no claim about the cause |
MACRS Basis | The basis the depreciation rates are applied to. The rows above sum to it |
MACRS table schedule (before limits) | The table rate for each year and what it produces. Shown when the asset has a yearly breakdown. A note names the §280F cap or business-use factor when one applies |
Accumulated depreciation | The amounts that make up the total below. Whichever of these apply: Section 179, bonus, depreciation taken through the prior year, the disposal year's, and a salvage floor adjustment |
Total Accumulated Depreciation | The sum of the accumulated rows above it |
Adjusted Basis | |
Sale Proceeds | |
Gain / Loss / No Gain/Loss | Highlighted green for a gain, red for a loss |
In partial mode the panel is tagged Estimated, and every figure in it describes the disposed portion rather than the whole asset.
Below the table, one of three panels appears:
An amber Depreciation Recapture panel when the disposal produces recapture, listing whichever of these apply: Ordinary Income (Section 1245), Unrecaptured Section 1250 Gain (max 25%), and Section 1231 Gain.
A blue Section 1231 Gain panel on a gain with no recapture.
A grey Section 1231 Loss panel on a loss.
The table schedule and the accumulated total are two different things. The schedule shows each year's table rate applied to the MACRS basis, before the §280F cap and any business-use factor. The accumulated rows below it are after both, which is why the two can differ on a vehicle or other listed property. The panel names the limits that separate them.
Commit
Click Record disposal. In partial mode the button reads Dispose portion, or Record election & dispose when you have turned on the partial disposition election.
Four of the nine kinds open an extra step underneath the form. When one is open, the Record disposal button is replaced by a line telling you to complete the step below:
Like-kind exchange (§1031) — Record a like-kind exchange
Involuntary conversion (§1033) and Casualty / theft (§165) — Record a casualty or condemnation
Installment sale (§453) — Record an installment sale
There is one case where the button stays. Pick Like-kind exchange (§1031) on an asset that is not real property and the product shows an amber panel explaining that this is not a §1031 exchange, but Record disposal remains available alongside it. Use the panel's Switch to sale button rather than recording.
Undo a disposal
Open the disposed asset and click Undo disposal. A confirmation dialog headed Undo Disposal appears, reading:
The asset will return to active status and depreciation will be recalculated on the next run.
Undoing a disposal on a piece of a split does not make that split undoable again. See Undo a split.