how to file form 4797
form 4797 has four parts in general most depreciable property held for more than a year is recognized under part i sales or exchanges of property used in a trade or business and involuntary conversions from other than casualty or theft 1property held for a year or less and sold for a loss is recorded in part ii ordinary gains and losses capital assets held for more than a year and sold for a profit fall in the section labeled part iii gain from disposition of property under sections 1245 1250 1252 1254 and 1255 3for a corporation or partnership the total amount entered on line 17 part ii must be added to the gross income line on schedule c 4 part iv is labeled recapture amounts under sections 179 and 280f b 2 when business use drops to 50 or less 5