Instructions for IRS Form 4797 Sales of Business Property

IRS Form 4797 Sales of Business Property

This document contains official instructions for IRS Form 4797 , Sales of Business Property - a tax form released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury. An up-to-date fillable IRS Form 4797 is available for download through this link.

FAQ

Q: What is IRS Form 4797?
A: IRS Form 4797 is used to report the sales of business property.

Q: Who needs to file Form 4797?
A: Individuals, partnerships, corporations, and other entities that have sold business property need to file Form 4797.

Q: What information is required on Form 4797?
A: Form 4797 requires information about the property being sold, the sale price, and any gain or loss.

Q: When is Form 4797 due?
A: Form 4797 is generally due on the tax return filing deadline, which is typically April 15th.

Q: Can Form 4797 be e-filed?
A: Yes, Form 4797 can be e-filed using tax software or through a tax professional.

Q: Is there a fee to file Form 4797?
A: There is no fee to file Form 4797, but you may need to pay a fee if you use tax software or hire a tax professional.

Q: What should I do if I make a mistake on Form 4797?
A: If you make a mistake on Form 4797, you can file an amended return using Form 1040X.

Q: What other forms may be required along with Form 4797?
A: Depending on your situation, you may also need to file Form 8824 for like-kind exchanges or Form 8949 for reporting capital gains and losses.

Q: Is there a penalty for not filing Form 4797?
A: Yes, there can be penalties for not filing Form 4797 or for filing it late, so it's important to meet the deadline.

Q: Can I deduct a loss from the sale of business property on Form 4797?
A: Yes, you can deduct a loss from the sale of business property on Form 4797, subject to certain limitations.