What is the form used for?
- The sale or exchange of property.
- The involuntary conversion of property and capital assets.
- The disposition of noncapital assets.
- The disposition of capital assets is not reported on Schedule D.
- The gain or loss for partners and S corporation shareholders from certain section 179 property dispositions by
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.
- Gains or losses are treated as ordinary gains or losses if you are a trader in securities or commodities and made a mark-to-market election under Internal Revenue Code section 475(f).
Is the form Supported in our program? The 4797 form is supported for 1040 returns in the Online software and 1040 and C-Corp, Exempt, Fiduciary, Partnership, and S-Corp packages for the Desktop software.
How to access the form: While in a return, use the Add Form function to add a new 4797 form to the return.
Limits to the form: This form is available for most packages, however only a limit of 1 form is allowed in a return.
Solution Articles:
Form 4797: Allows only 4 sold properties
IRS Link: https://www.irs.gov/forms-pubs/about-form-4797
