Form 4797 Sales of Business Property

Form

4797

Department of the Treasury
Internal Revenue Service (99)

2007

(Also Involuntary Conversions and Recapture Amounts
Under Sections 179 and 280F(b)(2))
©

Attachment
Sequence No.

Attach to your tax return. © See separate instructions.

Name(s) shown on return

1

OMB No. 1545-0184

Sales of Business Property

Enter the gross proceeds from sales or exchanges reported to you for 2007 on Form(s) 1099-B or 1099-S (or substitute
statement) that you are including on line 2, 10, or 20 (see instructions)

Part I

27

Identifying number

1

Sales or Exchanges of Property Used in a Trade or Business and Involuntary Conversions From Other
Than Casualty or Theft—Most Property Held More Than 1 Year (see instructions)
(a) Description
of property

(b) Date acquired
(mo., day, yr.)

(c) Date sold
(mo., day, yr.)

(d) Gross
sales price

(e) Depreciation
allowed or
allowable since
acquisition

(f) Cost or other
basis, plus
improvements and
expense of sale

(g) Gain or (loss)
Subtract (f) from the
sum of (d) and (e)

2

3

Gain, if any, from Form 4684, line 39

3

4

Section 1231 gain from installment sales from Form 6252, line 26 or 37

4

5

Section 1231 gain or (loss) from like-kind exchanges from Form 8824

5

6

Gain, if any, from line 32, from other than casualty or theft

6

7

Combine lines 2 through 6. Enter the gain or (loss) here and on the appropriate line as follows:

7

Partnerships (except electing large partnerships) and S corporations. Report the gain or (loss) following the
instructions for Form 1065, Schedule K, line 10, or Form 1120S, Schedule K, line 9. Skip lines 8, 9, 11, and 12 below.
Individuals, partners, S corporation shareholders, and all others. If line 7 is zero or a loss, enter the amount
from line 7 on line 11 below and skip lines 8 and 9. If line 7 is a gain and you did not have any prior year section
1231 losses, or they were recaptured in an earlier year, enter the gain from line 7 as a long-term capital gain
on the Schedule D filed with your return and skip lines 8, 9, 11, and 12 below.
8
9

Nonrecaptured net section 1231 losses from prior years (see instructions)
Subtract line 8 from line 7. If zero or less, enter -0-. If line 9 is zero, enter the gain from line 7 on line 12 below.
If line 9 is more than zero, enter the amount from line 8 on line 12 below and enter the gain from line 9 as a
long-term capital gain on the Schedule D filed with your return (see instructions)

Part II

8
9

Ordinary Gains and Losses (see instructions)

10

Ordinary gains and losses not included on lines 11 through 16 (include property held 1 year or less):

11

Loss, if any, from line 7
Gain, if any, from line 7 or amount from line 8, if applicable

11 (

Gain, if any, from line 31
Net gain or (loss) from Form 4684, lines 31 and 38a

13

Ordinary gain from installment sales from Form 6252, line 25 or 36
Ordinary gain or (loss) from like-kind exchanges from Form 8824

15

12
13
14
15
16
17
18

12
14
16
17

Combine lines 10 through 16
For all except individual returns, enter the amount from line 17 on the appropriate line of your return and skip
lines a and b below. For individual returns, complete lines a and b below:
a If the loss on line 11 includes a loss from Form 4684, line 35, column (b)(ii), enter that part of the loss here. Enter
the part of the loss from income-producing property on Schedule A (Form 1040), line 28, and the part of the
loss from property used as an employee on Schedule A (Form 1040), line 23. Identify as from “Form 4797, line
18a.” See instructions

18a

b Redetermine the gain or (loss) on line 17 excluding the loss, if any, on line 18a. Enter here and on Form 1040,
line 14

18b

For Paperwork Reduction Act Notice, see separate instructions.

)

Cat. No. 13086I

Form

4797

(2007)

Form 4797 (2007)

Part III
19

Page

2

Gain From Disposition of Property Under Sections 1245, 1250, 1252, 1254, and 1255
(see instructions)

(a) Description of section 1245, 1250, 1252, 1254, or 1255 property:

(b) Date acquired
(mo., day, yr.)

(c) Date sold
(mo., day, yr.)

Property C

Property D

A
B
C
D
These columns relate to the properties on lines 19A through 19D.

©

20

Gross sales price (Note: See line 1 before completing.)

20

21

Cost or other basis plus expense of sale

21

22
23

Depreciation (or depletion) allowed or allowable

22

Adjusted basis. Subtract line 22 from line 21

23

24

Total gain. Subtract line 23 from line 20

24

If section 1245 property:
a Depreciation allowed or allowable from line 22
b Enter the smaller of line 24 or 25a

Property A

Property B

25

26

25a
25b

If section 1250 property: If straight line depreciation was used, enter
-0- on line 26g, except for a corporation subject to section 291.
a Additional depreciation after 1975 (see instructions)

26a

b Applicable percentage multiplied by the smaller of line 24 or
line 26a (see instructions)

26b

c Subtract line 26a from line 24. If residential rental property or
line 24 is not more than line 26a, skip lines 26d and 26e

26c

d Additional depreciation after 1969 and before 1976

26d

e Enter the smaller of line 26c or 26d
f Section 291 amount (corporations only)
g Add lines 26b, 26e, and 26f

26e

27

If section 1252 property: Skip this section if you did not
dispose of farmland or if this form is being completed for a
partnership (other than an electing large partnership).

a Soil, water, and land clearing expenses
b Line 27a multiplied by applicable percentage (see instructions)
c Enter the smaller of line 24 or 27b
28

27a
27b
27c

If section 1254 property:

a Intangible drilling and development costs, expenditures for
development of mines and other natural deposits, and
mining exploration costs (see instructions)
b Enter the smaller of line 24 or 28a
29

26f
26g

28a
28b

If section 1255 property:

a Applicable percentage of payments excluded from income
under section 126 (see instructions)
b Enter the smaller of line 24 or 29a (see instructions)

29a
29b

Summary of Part III Gains. Complete property columns A through D through line 29b before going to line 30.
30

Total gains for all properties. Add property columns A through D, line 24

30

31
32

Add property columns A through D, lines 25b, 26g, 27c, 28b, and 29b. Enter here and on line 13
Subtract line 31 from line 30. Enter the portion from casualty or theft on Form 4684, line 33. Enter the portion from
other than casualty or theft on Form 4797, line 6

31

Part IV

32

Recapture Amounts Under Sections 179 and 280F(b)(2) When Business Use Drops to 50% or Less
(see instructions)
(a) Section
179

33
34
35

Section 179 expense deduction or depreciation allowable in prior years
Recomputed depreciation (see instructions)
Recapture amount. Subtract line 34 from line 33. See the instructions for where to report

(b) Section
280F(b)(2)

33
34
35
Form

4797

(2007)