(Form 4797) How to Enter The Sale of Business Property

Form 4797 is required for Sale of Business Property. In the program, the asset can be sold through the Disposition of Asset worksheet or by entering information directly on Form 4797. If entering information directly on Form 4797, see IRS Form 4797 Instructions.

Entering the Sale of Business Property on Form 4797 using the Disposition of Asset worksheet

1. Click Add Form on the tax return toolbar, and then click the Depreciation Tab.

2. Double click the business activity for the asset being sold to open the "Business Activity Asset" window.

3. Double click the asset being sold and then click Sale.

4. In the Date of Sale box, type the date the asset was sold.

5. In the Sales Price box, enter the price the asset was sold for.

6. In the Expenses of Sale, enter the total expenses for that sale.

7. Select the Form 4797 Ordinary check box.

8. Under Transaction Category, select the applicable transaction category.

9. If the asset was sold under an installment sale at a gain, select New Occurrence in the Form 6252 Installment Link list.

For more information on Sales of Business Property, see IRS Pub. 544.