Form 4797 Sales of Business Property

Introduction

Form 4797, Sales of Business Property is a supplemental form used by businesses to report the sale, exchange, or involuntary conversion of business property and assets.

Form 4797 is particularly relevant when reporting on Form 990-T as it helps account for gains or losses from property sales that contribute to an organization’s unrelated business income.

In this resource article, we will help you understand Form 4797 by clarifying who must file, the filing requirements, and addressing commonly asked questions.

What is Form 4797?

Form 4797 is used by businesses and individuals to report the sale, exchange, or involuntary conversion of property used in a trade or business. This can include real estate, machinery, vehicles, and other assets that have been depreciated or amortized.

The form captures detailed information about the transaction, including the original cost of the property, accumulated depreciation, and the sales price, to determine the gain or loss on the sale.

Who must file Form 4797?

Form 4797 must be filed by any individual, business, or organization that has sold or exchanged property used in their trade or business, or has had property involuntarily converted due to theft, casualty, or condemnation.

This includes corporations, partnerships, sole proprietorships, and tax-exempt organizations. Specifically, organizations filing Form 990-T may need to complete Form 4797 if they have disposed of property related to unrelated business income.

Choose TaxZerone to complete your Form 4797 filing

Navigating tax complexities for filing Form 4797 can be challenging, but TaxZerone makes it simple and stress-free.

As an IRS-authorized e-file service provider, we offer a user-friendly platform that guides you through the e-filing process, providing instant updates on your return status.

Here’s how your Form 990-T return with Form 4797 attachment is transmitted to the IRS in 3 simple steps!

1. Provide Organization Details - Choose the tax year for which you want to file the 990-T return, and provide your organization’s details.
2. Preview Form 4797 - Attach Form 4797 to report the sale, exchange, or involuntary conversion of business property and assets and preview the information provided in the return for accuracy before transmitting.
3. Transmit to the IRS - Transmit Form 4797 along with your 990-T Return to the IRS and get the acceptance in just a few hours.

Even if the IRS rejects your return, there's no need to worry! TaxZerone has your back with a hassle-free correction and retransmission process, all at no extra charge!