Form 4797 Sales of Business Property

Form

4797

Department of the Treasury
Internal Revenue Service

Sales of Business Property

OMB No. 1545-0184

2016

(Also Involuntary Conversions and Recapture Amounts
Under Sections 179 and 280F(b)(2))
Attach to your tax return.
Information about Form 4797 and its separate instructions is at www.irs.gov/form4797.
▶

▶

Enter the gross proceeds from sales or exchanges reported to you for 2016 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

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

2

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

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

(e) Depreciation
allowed or
allowable since
acquisition

(d) Gross
sales price

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

3
4

Gain, if any, from Form 4684, line 39 . . . . . . . . . . .
Section 1231 gain from installment sales from Form 6252, line 26 or 37 .

5
6
7

Section 1231 gain or (loss) from like-kind exchanges from Form 8824 . . . . . . . . . . . . . .
Gain, if any, from line 32, from other than casualty or theft
. . . . . . . . . . . . . . . . .
Combine lines 2 through 6. Enter the gain or (loss) here and on the appropriate line as follows: . . . . . . .
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 didn’t 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.

5
6
7

8

Nonrecaptured net section 1231 losses from prior years. See instructions .

8

9

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

27

Identifying number

Name(s) shown on return
1

Attachment
Sequence No.

.
.

.
.

.

.
.

.

.
.

.

.
.

.

.
.

.

.
.

.

.
.

.

.
.

.

.
.

.

.
.

.

.
.

.

.
.

.

Ordinary Gains and Losses (see instructions)

3
4

9

10

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

11
12
13

Loss, if any, from line 7 . . . . . . . . . . .
Gain, if any, from line 7 or amount from line 8, if applicable
Gain, if any, from line 31 . . . . . . . . . .

.
.
.

.
.
.

.
.
.

.
.
.

.
.
.

.
.
.

.
.
.

.
.
.

.
.
.

.
.
.

.
.
.

.
.
.

.
.
.

.
.
.

.
.
.

11 (
12
13

14
15
16

Net gain or (loss) from Form 4684, lines 31 and 38a . . . . .
Ordinary gain from installment sales from Form 6252, line 25 or 36 .
Ordinary gain or (loss) from like-kind exchanges from Form 8824. .

.
.
.

.
.
.

.
.
.

.
.
.

.
.
.

.
.
.

.
.
.

.
.
.

.
.
.

.
.
.

.
.
.

.
.
.

.
.
.

.
.
.

14
15
16

17
18

Combine lines 10 through 16 .

.

.

.

.

.

.

.

.

.

.

.

.

.

.

17

.

.

.

.

.

.

.

.

.
.
.

.

.
.
.

.

.

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

)

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 . .
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

For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 13086I

18a
18b

Form 4797 (2016)

Page 2

Form 4797 (2016)

Part III
19

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
21
22
23
24
25

26

27

28

Gross sales price (Note: See line 1 before completing.)
Cost or other basis plus expense of sale . . . .
Depreciation (or depletion) allowed or allowable . .
Adjusted basis. Subtract line 22 from line 21 . . .

.
.
.
.

20
21
22
23

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 . . . .

.

.
.

.
.

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 isn’t more than line 26a, skip lines 26d and 26e
d Additional depreciation after 1969 and before 1976 . .
e Enter the smaller of line 26c or 26d . . . . . .
f Section 291 amount (corporations only) . . . . .
g Add lines 26b, 26e, and 26f. . . . . . . . .

26c
26d
26e
26f
26g

If section 1252 property: Skip this section if you didn’t
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 . . . . . .

27a
27b
27c

Property B

If section 1254 property:
a Intangible drilling and development costs, expenditures
for development of mines and other natural deposits,
mining exploration costs, and depletion. See
instructions . . . . . . . . . . . . .
b Enter the smaller of line 24 or 28a . . . . . .

29

Property A

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

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 . . . . . . . . . . . . . . . . . . . .

Part IV

.

.

.

.

.

.

.

.

.

.

.

.

.

30
31
32

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

33

Section 179 expense deduction or depreciation allowable in prior years.

.

.

.

34
35

Recomputed depreciation. See instructions . . . . . . . . . . . . . .
Recapture amount. Subtract line 34 from line 33. See the instructions for where to report

.
.

.
.

.

.

.

.

33
34
35

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

Form 4797 (2016)