Preparing Form 4797, Sales of Business Property: Minimizing Tax on Dispositions

Form 4797, Sales of Business Property, is one of the most complex but necessary forms practitioners prepare. Sales of intangible and tangible property are reported here, along with the calculation of the related gains and losses, including depreciation and Section 179 recapture. Calculating, separating, and reporting these gains and losses, and determining how much of a gain or loss is taxed as ordinary, capital, Section 1231, 1245, 1250, or other type gain is critical.

The dispositions reported on Form 4797 often warrant additional reporting and calculations on related forms. Tax saving elections for like-kind exchanges, installment sales, and investments in qualified opportunity funds require calculations in addition to those on Form 4797. Determining where the calculated amounts on Form 4797 flow and which additional forms are needed can be daunting.

Listen as our panel of federal tax experts walks you through the preparation of Form 4797, Parts I-IV, and the calculation and considerations surrounding reporting business gains and losses.

1. Form 4797, Sales of Business Property
2. Types of gains
   1. Ordinary vs. capital
   2. Section 1245, 1231, 1250
3. Recapture
   1. Section 179
   2. Depreciation
4. Related reporting requirements
   1. Form 8824, Like-Kind Exchanges
   2. Form 6252, Installment Sale Income
   3. Opportunity funds
   4. Other
5. Completing Form 4797

The panel will cover these and other critical issues:

• Calculating unrecaptured Section 1250 on property sales
• Preparing Part III of Form 4797 and calculating Section 1245 and 1250 gains
• How deferred gains on qualified opportunity fund sales are calculated and reported
• Calculating Section 179 recapture on depreciable assets

Learning Objectives

After completing this course, you will be able to:

• Determine unrecaptured Section 1250 gain on real estate sales
• Identify Section 1231 property
• Ascertain specific elections that are available to reduce gains on the sale of property
• Decide when recapture of Section 179 expense is required

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of pass-through taxation, including taxation of partnerships, S corporations and their respective partners and shareholders.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).