Form 4797

Form 4797

A form one files with the IRS to report the profits (or losses) from the sale or exchange of an asset. For example, if a company sells the equipment from one of its factories, it reports the results of the sale on Form 4797.
Mentioned in ?
References in periodicals archive ?
For example, if an S corporation has a net IRC section 1231 loss of $10,000 that passes through to Brett, he will report the $10,000 loss on his Form 4797 and reduce his basis in his S corporation stock by $10,000.
To make the election, the taxpayer completes Form 4797, Sales of Business Property, for the partial asset disposition and includes the form with its timely filed 2015 tax return.
Others take a more aggressive approach and say that the loss can be taken on the front of the Form 1040 on the line labeled "Other gains or (losses)" with supporting reporting on Form 4797.
The election is made by claiming an ordinary loss for the sale on Form 4797, Sales of Business Property.
[section] 1235(d); see Form 1040, Schedule D, supra note 157 (requiring no special reporting regarding dispositions of patents, let alone reporting regarding transfers to related persons); Schedule D Instructions, supra note 173 (same); Form 4797, supra note 170 (same); Form 4797 Instructions, supra note 170 (same).
Even more elaborate and time-consuming reconciliations are required to fie out the amounts for gains and losses from property reported on lines 23(a)-(g) of Part II of Schedule M-3 and related lines 8 and 9 of Form 1120 and Form 4797. None of the reconciliation schedules is necessary for the proper determination or examination of a taxpayer's tax liability because they are prepared solely for reconciling lines on the Form 1120 (or detail form) with the Schedule M-3.
Additionally, upon the sale of his home, additional forms were required including Schedule D and Form 4797 (Sale of Business Property).
If the loss occurred with respect to business or income-producing property, it should be an ordinary deduction as reported through Form 4797, Sales of Business Property.
The instructions to the 2000 IRS Form 4797 contain the following additional information.
In addition, Schedule A and Form 4797, Sales of business Property, may also be required to be filed.
1231(c)(1) (the five-year taint that appears in Part I of Form 4797, Sales of Business Property).
Sellers who must pay tax on gain representing post-May 6, 1997, depreciation of business or investment property report that gain on form 4797. The gain is taxed at 25% as unrecaptured section 1250 gain.