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Form 4797 Reports

When you request a 4797 report, you must enter the Book and From/To Period range.

Gain From Disposition of 1245/1250 Property Reports

These reports calculate gain or loss amounts for sales of 1245 or 1250 property held longer than the capital gain threshold you entered for the book in the Book Controls form. Personal property is section 1245 or 1250 business property under United States tax law.

To use the 1245 or 1250 report, complete Part III of the United States federal tax form 4797 - Sales of Business Property and enter a capital gain threshold of one year. If you need different capital gains thresholds for different dates placed in service, such as the six month threshold for assets placed in service before January 1, 1988 in the United States, set up your asset category for the different date placed in service ranges with different thresholds.

The reports only show assets that were sold, so assets without proceeds of sale do not appear. For items that were lost or stolen, run the Form 4684 - Casualties and Thefts Report.

The reports are sorted by balancing segment, into gains and losses, by asset account, and by asset number. The reports print totals for each asset account, for gains or losses, and for each balancing segment.

Selected Headings of the 1245 Report:

Capital Gain: The capital gain resulting from the sale of the asset as the amount by which the gain exceeds the depreciation reserve. Or zero if the gain does not exceed the depreciation reserve or if the sale results in a loss.

You can use this amount as your section 1231 gain for the form 4797.

Ordinary Income: The ordinary income resulting from the sale of the asset as the lesser of the gain amount or the depreciation reserve retired. Or zero if the sale results in a loss.

Capital Loss: The loss resulting from the sale as the loss amount. Or zero if the sale results in a gain.

Selected Headings of the 1250 Report:

Gain Limitation: The gain/loss amount, or zero if the sale results in a loss.

Excess Depreciation: For assets you held for more than a year, the excess depreciation is:

Revaluation Reserve Retired - STL Depreciation Amount

If you held the asset for less than one year, excess depreciation is the Depreciation Reserve Retired.

Section 1231 Gain: Gain Limitation - Ordinary Income + Recapture Gain

The report prints zero if the sale results in a loss.

Ordinary Income: The lesser of:

or:

where:

The report prints zero if the sale results in a loss.

Section 1231 Loss: The loss amount, or zero if the sale results in a gain.

Ordinary Gains and Losses Report and Sales or Exchanges of Property Report

The Ordinary Gains and Losses Report calculates gain or loss amounts for sales of business property (both 1245 and 1250) held for less time than the capital gain threshold you entered for the book in the Book Controls form. The Sales or Exchanges of Property Report calculates amounts for sales held longer than the capital gain threshold you entered for the book in the Book Controls form.

Both reports are sorted by balancing segment (into gains and losses), by property class, asset account, and asset number. The reports print totals for each asset account, for each property class, for gains or losses, and for each balancing segment.

To use the Ordinary Gains and Losses Report, complete Part II (Part I for the Sales or Exchanges of Property Report) of the United States federal tax form 4797 - Sales of Business Property, enter a capital gain threshold of one year. If you need different capital gains thresholds for different dates placed in service, such as the six month threshold for assets placed in service before January 1, 1988 in the United States, you should set up your asset category for the different date placed in service ranges with different thresholds.

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