Sales of Business Property Form 4797 (Also Involuntary Conversions and Recapture Amounts

Under Sections 179 and 280F(b)(2)) Department of the Treasury 

Internal Revenue Service

Attachment 

© Attach to your tax return. © See separate instructions. Sequence No. 27

Name(s) shown on return Identifying number

Sales or Exchanges of Property Used in a Trade or Business and Involuntary Conversions From Other

Than Casualty or Theft—Property Held More Than 1 Year

Enter here the gross proceeds from the sale or exchange of real estate reported to you for 1997 on Form(s) 1099-S

(or a substitute statement) that you will be including on line 2, 10, or 20

1

1

(f) Cost or other

basis, plus

improvements and

expense of sale

(e) Depreciation

allowed

or allowable since

acquisition

(h) 28% RATE GAIN

or (LOSS)

(g) GAIN or (LOSS)

for entire year.

Subtract (f) from

the sum of (d)

and (e)

(c) Date sold 

(mo., day, yr.)

(b) Date acquired

(mo., day, yr.)

(a) Description of

property

(d) Gross sales

price

2

3 Gain, if any, from Form 4684, line 39

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

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

5

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

6

7

Partnerships—Enter the gain or (loss) on Form 1065, Schedule K, lines 6a and 6b. Skip lines

8, 9, 11, and 12 below.

S corporations—Report the gain or (loss) following the instructions for Form 1120S, Schedule

K, lines 5 and 6. Skip lines 8, 9, 11, and 12 below, unless line 7, column (g) is a gain and the S

corporation is subject to the capital gains tax.

All others—If line 7, column (g) is zero or a loss, enter that amount on line 11 below and skip

lines 8 and 9. If line 7, column (g) 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 or (loss) in each column as a

long-term capital gain or (loss) on Schedule D and skip lines 8, 9, and 12 below.

8 Nonrecaptured net section 1231 losses from prior years (see instructions)

9 Subtract line 8 from line 7. If zero or less, enter -0-. Also enter on the appropriate line as follows (see instructions):

S corporations—Enter only the gain in column (g) on Schedule D (Form 1120S), line 14, and skip lines 11 and 12 below.

All others—If line 9, column (g) is zero, enter the gain from line 7, column (g) on line 12 below. If line 9, column (g) is more than zero, enter

the amount from line 8, column (g) on line 12 below, and enter the gain or (loss) in each column of line 9 as a long-term capital gain or (loss)

on Schedule D.

Ordinary Gains and Losses

Ordinary gains and losses not included on lines 11 through 17 (include property held 1 year or less):

Loss, if any, from line 7, column (g)

10

Gain, if any, from line 7, column (g) or amount from line 8, column (g) if applicable

11

Gain, if any, from line 31

12

Net gain or (loss) from Form 4684, lines 31 and 38a

13

Ordinary gain from installment sales from Form 6252, line 25 or 36

14

Recapture of section 179 expense deduction for partners and S corporation shareholders from

property dispositions by partnerships and S corporations (see instructions)

15

Combine lines 10 through 17 in column (g). Enter gain or (loss) here, and on the appropriate line as follows:

16

17

a For all except individual returns: Enter the gain or (loss) from line 18 on the return being filed.

b For individual returns:

If the loss on line 11 includes a loss from Form 4684, line 35, column (b)(ii), enter that part

of the loss here and on line 22 of Schedule A (Form 1040). Identify as from “Form 4797, line

18b(1).” See instructions

(1)

(2) Redetermine the gain or (loss) on line 18, excluding the loss, if any, on line 18b(1). Enter

here and on Form 1040, line 14

For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 13086I Form 4797 (1997)

Part I

Part II

OMB No. 1545-0184

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

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

18

3

4

5

6

7

8

11

12

13

14

15

16

17

18

18b(1)

18b(2)

(99)

97

9

*

* (see instr. below)

Corporations (other than S corporations) should not complete column (h). Partnerships and S corporations must complete column (h). All others must complete

column (h) only if line 7, column (g), is a gain. 28% rate gain or loss includes all gains and losses in column (g) from sales, exchanges, or conversions (including

installment payments received) either (a) before 5/7/97 or (b) after 7/28/97 for assets held more than 1 year but not more than 18 months.
Form 4797 (1997) Page 2

Gain From Disposition of Property Under Sections 1245, 1250, 1252, 1254, and 1255

(c) Date sold

(mo., day, yr.)

(b) Date acquired

(mo., day, yr.) (a) Description of section 1245, 1250, 1252, 1254, or 1255 property:

A

B

C

D

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

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

Cost or other basis plus expense of sale

19

Depreciation (or depletion) allowed or allowable

20

Adjusted basis. Subtract line 22 from line 21

21

Total gain. Subtract line 23 from line 20

22

If section 1245 property:

23

a Depreciation allowed or allowable from line 22

b Enter the smaller of line 24 or 25a

If section 1250 property: If straight line depreciation was used, enter

-0- on line 26g, except for a corporation subject to section 291.

24

a Additional depreciation after 1975 (see instructions)

Applicable percentage multiplied by the smaller of line 24

or line 26a (see instructions)

b

Subtract line 26a from line 24. If residential rental property

or line 24 is not more than line 26a, skip lines 26d and 26e

c

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

25

If section 1252 property: Skip this section if you did not dispose

of farmland or if this form is being completed for a 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

If section 1254 property:

26

Intangible drilling and development costs, expenditures for

development of mines and other natural deposits, and

mining exploration costs (see instructions)

a

b Enter the smaller of line 24 or 28a

If section 1255 property:

27

Applicable percentage of payments excluded from income

under section 126 (see instructions)

a

b Enter the smaller of line 24 or 29a (see instructions)

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

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

28

Add property columns A through D, lines 25b, 26g, 27c, 28b, and 29b. Enter here and on line 13

29

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, column (g), and if applicable, column (h)

30

31

32

33

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

See instructions.

(b) Section 

280F(b)(2)

(a) Section

179

Section 179 expense deduction or depreciation allowable in prior years

34 Recomputed depreciation. See instructions

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

Part IV

Part III

20

21

22

23

24

25a

26a

27a

28a

29a

26b

26c

26d

26e

26f

26g

27b

27c

28b

29b

25b

30

31

32

33

34

35