A disposition of a business asset is the removal of that asset from the business. The asset must be on your books even if it has been fully depreciated in prior years.
The most common types of asset dispositions are:
- Lost or stolen
- Like-kind exchange
If your company had the asset at one time but no longer possesses it, then it's a disposition. Typically, a disposition refers to the sale of a business asset.
In TurboTax Business, you'll need to enter the asset into the program before you can enter its disposition information. To enter dispositions in TurboTax Business, select the Depreciation tab and then follow the on-screen instructions in the Interview.