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

Under Sections 179 and 280F) 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 1991 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) GAIN

((d) plus (e)

minus (f))

(g) LOSS

((f) minus 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, Section B, line 21 

4 Section 1231 gain from installment sales from Form 6252, line 22 or 30 

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

( ) 6 Add lines 2 through 5 in columns (g) and (h) 

7 Combine columns (g) and (h) of line 6. Enter gain or (loss) here, and on the appropriate line as follows: 

Partnerships.—Enter the gain or (loss) on Form 1065, Schedule K, line 6. 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 is a gain and the S corporation is subject to the capital gains tax.

All others.—If line 7 is zero or a loss, enter the amount 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 as a

long-term capital gain 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 this amount (if more than zero) on Schedule D (Form 1120S), line 7, and skip lines 11 and 12 below.

All others.—If line 9 is zero, enter the amount 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 amount from line 9 as a long-term capital gain on Schedule D.

Ordinary Gains and Losses

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 

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

13 Gain, if any, from line 31 

14 Net gain or (loss) from Form 4684, Section B, lines 13 and 20a 

15 Ordinary gain from installment sales from Form 6252, line 21 or 29 

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

dispositions by partnerships and S corporations (see instructions) 

16

( ) 17 Add lines 10 through 16 in columns (g) and (h) 

18 Combine columns (g) and (h) of line 17. Enter gain or (loss) here, and on the appropriate line as follows: 

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, Section B, Part II, column (b)(ii), enter that part of the loss

here and on line 20 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 15

For Paperwork Reduction Act Notice, see page 1 of separate instructions. Cat. No. 13086I Form 4797 (1991)

Part I

Part II

OMB No. 1545-0184
Form 4797 (1991) Page 2

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

Date sold

(mo., day, yr.)

Date acquired Description of section 1245, 1250, 1252, 1254, or 1255 property: (mo., day, yr.) 19

A

B

C

D

Relate lines 19A through 19D to these columns © Property A Property B Property C Property D

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

21 Cost or other basis plus expense of sale 

22 Depreciation (or depletion) allowed or allowable 

23 Adjusted basis. Subtract line 22 from line 21 

24 Total gain. Subtract line 23 from line 20 

25 If section 1245 property:

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 unless you are a corporation subject to section 291.

26

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 line 24 is not more than line 26a,

skip lines 26d and 26e 

c

d Additional depreciation after 1969 and before 1976 

Applicable percentage multiplied by the smaller of line 26c or 26d

(see instructions) 

e

f Section 291 amount (corporations only) 

g Add lines 26b, 26e, and 26f 

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

of farmland or if you are 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 

28 If section 1254 property:

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 

29 If section 1255 property:

Applicable percentage of payments excluded from income under

section 126 (see instructions) 

a

b Enter the smaller of line 24 or 29a 

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 columns A through D, line 24 

Add columns A through D, lines 25b, 26g, 27c, 28b, and 29b. Enter here and on line 13. (See the instructions for Part

IV if this is an installment sale.) 

31

Subtract line 31 from line 30. Enter the portion from casualty or theft on Form 4684, Section B, line 15. Enter the portion

from other than casualty or theft on Form 4797, line 5 

32

Election Not to Use the Installment Method (Complete this part only if you elect out of the installment

method and report a note or other obligation at less than full face value.)

33 Check here if you elect out of the installment method ©

34 Enter the face amount of the note or other obligation © $

35 Enter the percentage of valuation of the note or other obligation © %

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

(See instructions for Part V.)

(a) Section 179 (b) Section 280F

36 Section 179 expense deduction or depreciation allowable in prior years

37 Recomputed depreciation (see instructions) 

38 Recapture amount. Subtract line 37 from line 36. (See instructions for where to report.) 

Part V

Part IV

Part III