Form 4797 – Sale of Business Property

Use Form 4797 to report:

The sale or exchange of:
- Property used in your trade or business
- Depreciable and amortizable property
- Oil, gas, geothermal, or other mineral properties
- Section 126 property
The involuntary conversion (from other than casualty or theft) of property used in your trade or business and capital assets held in connection with trade or business or a transaction entered into for profit.
The disposition of noncapital assets (other than inventory or property held primarily for sale to customers in the ordinary course of your trade or business).
The disposition of capital assets not reported on Schedule D.
The gain or loss (including any related recapture) for partners and S corporation shareholders from certain section 179 property dispositions by partnerships (other than electing large partnerships) and S corporations.
The computation of recapture amounts under sections 179 and 280F(b)(2) when the business use of section 179 or listed property decreases to 50% or less.

	Type of Property	Held 1 year or less	Held more than 1 year
1	Depreciable trade or business property:
a	Sold or exchanged at a gain	Part II	Part III (1245, 1250)
b	Sold or exchanged at a loss	Part II	Part I
2	Depreciable residential rental property:
a	Sold or exchanged at a gain	Part II	Part III (1250)
b	Sold or exchanged at a loss	Part II	Part I
3	Farmland held less than 10 years upon which soil, water, or land clearing expenses were deducted:
a	Sold at a gain	Part II	Part III (1252)
b	Sold at a loss	Part II	Part I
4	All other farmland:	Part II	Part I
5	Disposition of cost-sharing payment property described in section 126:	Part II	Part III (1255)
6	Cattle and horses used in a trade or business for draft, breeding, dairy, or sporting purposes:	Held less than 24 months	Held 24 months or more
a	Sold at a gain	Part II	Part III (1245)
b	Sold at a loss	Part II	Part I
c	Raised cattle and horses sold at a gain	Part II	Part I
7	Livestock other than cattle and horses uses in a trade or business for draft, breeding, dairy, or sporting purposes:	Held less than 12 months	Held 12 months or more
a	Sold at a gain	Part II	Part III (1245)
b	Sold at a loss	Part II	Part I
c	Raised livestock sold at a gain	Part II	Part I

NOTE: This is a guide on entering Form 4797 into Keystone Tax Solutions. This is not intended as tax advice.

Updated on July 9, 2018