Disposal property code
Disposal property codes are optional, user-defined labels that group assets being disposed of for reporting purposes.
Why would I use disposal property codes?
One reason you might use disposal property codes is for tax reporting requirements. You can classify disposal property by U.S. IRS Tax Code section if this is required for federal tax reporting. The U.S. Tax Code requires reporting on disposal of specific types of assets. Consult your tax advisor to determine whether you have U.S. Federal tax reporting requirements for disposal property.
For example:
| Disposal property | Description |
|---|---|
| 1245 | IRS Section 1245 Property |
| 1250 | IRS Section 1250 Property |
Another reason you might use disposal property codes is to provide more details about the specific disposal circumstances when you use the disposal type of Other.
For example:
| Disposal property | Description |
|---|---|
| STOLEN | Stolen |
| BROKEN | Asset beyond repair |