IRS · Official form

Form 4797, Sales of Business Property

Form 4797 reports gains and losses from selling or exchanging property used in a trade or business, including depreciation recapture. Fill in the official IRS PDF below and download it for your return.

Fill out 4797 in the editor Download the blank PDF Quick fill on this page

This is the genuine IRS PDF, unmodified. Source: IRS official page.

What is 4797?

Form 4797 is where business property dispositions get sorted into ordinary and capital treatment. Part I covers sales of property held more than a year under section 1231, Part II covers ordinary gains and losses, and Part III computes depreciation recapture on assets such as equipment and real estate under sections 1245 and 1250. Part IV handles recapture when business use of listed property or section 179 assets drops.

The form also reports involuntary conversions from casualty or condemnation and is used by securities or commodities traders who have made a mark-to-market election. Results flow to Schedule D or directly to your income tax return depending on the character of the gain or loss.

Who files 4797?

Business owners and self-employed people who sold, exchanged, or scrapped business property
Landlords disposing of rental real estate with depreciation to recapture
Taxpayers reporting an involuntary conversion of business or income-producing property
Traders in securities or commodities reporting under a mark-to-market election

How to fill out 4797

Gather the purchase and sale records for each asset: dates acquired and sold, sales price, cost basis, and depreciation claimed.
Enter long-term business property sales in Part I and short-term or ordinary items in Part II.
For depreciable assets, work through Part III line by line to figure how much gain is recaptured as ordinary income.
Carry the totals to the summary lines, which direct each amount to Schedule D or your main return.
Download the completed PDF and attach it to your income tax return for the year of the sale.

Quick fill 4797 on this page

Prefer to see the form itself while you type? Open 4797 in the editor to fill it on the actual pages, add a signature, and download.

These are the form's own fields, in the order they appear on the pages. Fill in what you know; anything left blank stays a fillable field in the PDF, so you can finish it in any PDF reader. Nothing you type here is sent to IRS.

Page 1 77 fields

Name(s) shown on return

Identifying number

1a. Enter the gross proceeds from sales or exchanges reported to you for 2025 on Form(s) 1099-B or 1099-S (or substitute statement) that

1b. Enter the total amount of gain that you are including on lines 2, 10, and 24 due to the partial dispositions of M A C R S assets.

1c. Enter the total amount of loss that you are including on lines 2 and 10 due to the partial dispositions of M A C R S assets.

2. Row: 1. Column: (a) Description of property.

Row: 1. Column: (b) Date acquired (mo., day, yr.)

Row: 1. Column: (c) Date sold (mo., day, yr.)

Row: 1. Column: (d) Gross sales price.

Row: 1. Column: (e) Depreciation allowed or allowable since acquisition.

Row: 1. Column: (f) Cost or other basis, plus improvements and expense of sale.

Row: 1. Column: (g) Gain or (loss). Subtract (f) from the sum of (d) and (e).

Row: 2. Column: (a) Description of property.

Row: 2. Column: (b) Date acquired (mo., day, yr.)

Row: 2. Column: (c) Date sold (mo., day, yr.)

Row: 2. Column: (d) Gross sales price.

Row: 2. Column: (e) Depreciation allowed or allowable since acquisition.

Row: 2. Column: (f) Cost or other basis, plus improvements and expense of sale.

Row: 2. Column: (g) Gain or (loss). Subtract (f) from the sum of (d) and (e).

Row: 3. Column: (a) Description of property.

Row: 3. Column: (b) Date acquired (mo., day, yr.)

Row: 3. Column: (c) Date sold (mo., day, yr.)

Row: 3. Column: (d) Gross sales price.

Row: 3. Column: (e) Depreciation allowed or allowable since acquisition.

Row: 3. Column: (f) Cost or other basis, plus improvements and expense of sale.

Row: 3. Column: (g) Gain or (loss). Subtract (f) from the sum of (d) and (e).

Row: 4. Column: (a) Description of property.

Row: 4. Column: (b) Date acquired (mo., day, yr.)

Row: 4. Column: (c) Date sold (mo., day, yr.)

Row: 4. Column: (d) Gross sales price.

Row: 4. Column: (e) Depreciation allowed or allowable since acquisition.

Row: 4. Column: (f) Cost or other basis, plus improvements and expense of sale.

Row: 4. Column: (g) Gain or (loss). Subtract (f) from the sum of (d) and (e).

3. Gain, if any, from Form 4684, line 39.

4. Section 1231 gain from installment sales from Form 6252, line 26 or 37.

5. Section 1231 gain or (loss) from like-kind exchanges from Form 8824.

6. Gain, if any, from line 32, from other than casualty or theft.

If line 7 is a gain and you didn't have any prior year section 1231 losses, or they were recaptured in an earlier year, enter the gain from

8. Nonrecaptured net section 1231 losses from prior years. See instructions.

9. Subtract line 8 from line 7. If zero or less, enter 0. If line 9 is zero, enter the gain from line 7 on line 12 below. If line 9 is more

10. Ordinary gains and losses not included on lines 11 through 16 (include property held 1 year or less): Row: 1. Column: (a) Description

Row: 1. Column: (b) Date acquired (month, day, year).

Row: 1. Column: (c) Date sold (month, day, year).

Row: 1. Column: (d) Gross sales price.

Row: 1. Column: (e) Depreciation allowed or allowable since acquisition.

Row: 1. Column: (f) Cost or other basis, plus improvements and expense of sale.

Row: 1. Column: (g) Gain or (loss). Subtract (f) from the sum of (d) and (e).

Row: 2. Column: (a) Description of property.

Row: 2. Column: (b) Date acquired (month, day, year).

Row: 2. Column: (c) Date sold (month, day, year).

Row: 2. Column: (d) Gross sales price.

Row: 2. Column: (e) Depreciation allowed or allowable since acquisition.

Row: 2. Column: (f) Cost or other basis, plus improvements and expense of sale.

Row: 2. Column: (g) Gain or (loss). Subtract (f) from the sum of (d) and (e).

Row: 3. Column: (a) Description of property.

Row: 3. Column: (b) Date acquired (month, day, year).

Row: 3. Column: (c) Date sold (month, day, year).

Row: 3. Column: (d) Gross sales price.

Row: 3. Column: (e) Depreciation allowed or allowable since acquisition.

Row: 3. Column: (f) Cost or other basis, plus improvements and expense of sale.

Row: 3. Column: (g) Gain or (loss). Subtract (f) from the sum of (d) and (e).

Row: 4. Column: (a) Description of property.

Row: 4. Column: (b) Date acquired (month, day, year).

Row: 4. Column: (c) Date sold (month, day, year).

Row: 4. Column: (d) Gross sales price.

Row: 4. Column: (e) Depreciation allowed or allowable since acquisition.

Row: 4. Column: (f) Cost or other basis, plus improvements and expense of sale.

Row: 4. Column: (g) Gain or (loss). Subtract (f) from the sum of (d) and (e).

11. Open parenthesis. Loss, if any, from line 7. Close parenthesis.

12. Gain, if any, from line 7 or amount from line 8, if applicable.

13. Gain, if any, from line 31.

14. Net gain or (loss) from Form 4684, lines 31 and 38a.

15. Ordinary gain from installment sales from Form 6252, line 25 or 36.

16. Ordinary gain or (loss) from like-kind exchanges from Form 8824.

17. Combine lines 10 through 16.

18. For all except individual returns, enter the amount from line 17 on the appropriate line of your return and skip lines a and b below.

18b. Redetermine the gain or (loss) on line 17 excluding the loss, if any, on line 18a. Enter here and on Schedule 1 (Form 1040), Part I,

Page 2 105 fields

19. Row: A. Column: (a) Description of section 1245, 1250, 1252, 1254, or 1255 property:

Row: A. Column: (b) Date acquired (mo., day, yr.)

Row: A. Column: (c) Date sold (mo., day, yr.)

Row: B. Column: (a) Description of section 1245, 1250, 1252, 1254, or 1255 property:

Row: B. Column: (b) Date acquired (mo., day, yr.)

Row: B. Column: (c) Date sold (mo., day, yr.)

Row: C. Column: (a) Description of section 1245, 1250, 1252, 1254, or 1255 property:

Row: C. Column: (b) Date acquired (mo., day, yr.)

Row: C. Column: (c) Date sold (mo., day, yr.)

Row: D. Column: (a) Description of section 1245, 1250, 1252, 1254, or 1255 property:

Row: D. Column: (b) Date acquired (mo., day, yr.)

Row: D. Column: (c) Date sold (mo., day, yr.)

Gross sales price (Note: See line 1a before completing.) Column: Property A.

Row: 20. Gross sales price (Note: See line 1a before completing.) Column: Property B.

Row: 20. Gross sales price (Note: See line 1a before completing.) Column: Property C.

Row: 20. Gross sales price (Note: See line 1a before completing.) Column: Property D.

Row: 21. Cost or other basis plus expense of sale. Column: Property A.

Row: 21. Cost or other basis plus expense of sale. Column: Property B.

Row: 21. Cost or other basis plus expense of sale. Column: Property C.

Row: 21. Cost or other basis plus expense of sale. Column: Property D.

Row: 22. Depreciation (or depletion) allowed or allowable. Column: Property A.

Row: 22. Depreciation (or depletion) allowed or allowable. Column: Property B.

Row: 22. Depreciation (or depletion) allowed or allowable. Column: Property C.

Row: 22. Depreciation (or depletion) allowed or allowable. Column: Property D.

Row: 23. Adjusted basis. Subtract line 22 from line 21. Column: Property A.

Row: 23. Adjusted basis. Subtract line 22 from line 21. Column: Property B.

Row: 23. Adjusted basis. Subtract line 22 from line 21. Column: Property C.

Row: 23. Adjusted basis. Subtract line 22 from line 21. Column: Property D.

Row: 24. Total gain. Subtract line 23 from line 20. Column: Property A.

Row: 24. Column: Property B.

Row: 24. Column: Property C.

Row: 24. Column: Property D.

25. If section 1245 property: Row: a. Depreciation allowed or allowable from line 22. Column: Property A.

Row: 25a. Depreciation allowed or allowable from line 22. Column: Property B.

Row: 25a. Depreciation allowed or allowable from line 22. Column: Property C.

Row: 25a. Depreciation allowed or allowable from line 22. Column: Property D.

25. If section 1245 property: Row: b. Enter the smaller of line 24 or 25a. Column: Property A.

Row: 25b. Enter the smaller of line 24 or 25a. Column: Property B.

Row: 25b. Enter the smaller of line 24 or 25a. Column: Property C.

Row: 25b. Enter the smaller of line 24 or 25a. Column: Property D.

26. If section 1250 property: If straight line depreciation was used, enter 0 on line 26g, except for a corporation subject to section 291.

Row: 26a. Additional depreciation after 1975. See instructions. Column: Property B.

Row: 26a. Additional depreciation after 1975. See instructions. Column: Property C.

Row: 26a. Additional depreciation after 1975. See instructions. Column: Property D.

Row: 26b. Applicable percentage multiplied by the smaller of line 24 or line 26a. See instructions. Column: Property A.

Row: 26b. Applicable percentage multiplied by the smaller of line 24 or line 26a. See instructions. Column: Property B.

Row: 26b. Applicable percentage multiplied by the smaller of line 24 or line 26a. See instructions. Column: Property C.

Row: 26b. Applicable percentage multiplied by the smaller of line 24 or line 26a. See instructions. Column: Property D.

Row: 26c. Subtract line 26a from line 24. If residential rental property or line 24 isn't more than line 26a, skip lines 26d and 26e.

Row: 26d. Additional depreciation after 1969 and before 1976. Column: Property A.

Row: 26d. Additional depreciation after 1969 and before 1976. Column: Property B.

Row: 26d. Additional depreciation after 1969 and before 1976. Column: Property C.

Row: 26d. Additional depreciation after 1969 and before 1976. Column: Property D.

Row: 26e. Enter the smaller of line 26c or 26d. Column: Property A.

Row: 26e. Enter the smaller of line 26c or 26d. Column: Property B.

Row: 26e. Enter the smaller of line 26c or 26d. Column: Property C.

Row: 26e. Enter the smaller of line 26c or 26d. Column: Property D.

Row: 26f. Section 291 amount (corporations only). Column: Property A.

Row: 26f. Section 291 amount (corporations only). Column: Property B.

Row: 26f. Section 291 amount (corporations only). Column: Property C.

Row: 26f. Section 291 amount (corporations only). Column: Property D.

Row: 26g. Add lines 26b, 26e, and 26f. Column: Property A.

Row: 26g. Add lines 26b, 26e, and 26f. Column: Property B.

Row: 26g. Add lines 26b, 26e, and 26f. Column: Property C.

Row: 26g. Add lines 26b, 26e, and 26f. Column: Property D.

27. If section 1252 property: Skip this section if you didn't dispose of farmland or if this form is being completed for a partnership.

Row: 27a. Soil, water, and land clearing expenses. Column: Property B.

Row: 27a. Soil, water, and land clearing expenses. Column: Property C.

Row: 27a. Soil, water, and land clearing expenses. Column: Property D.

Row: 27b. Line 27a multiplied by applicable percentage. See instructions. Column: Property A.

Row: 27b. Line 27a multiplied by applicable percentage. See instructions. Column: Property B.

Row: 27b. Line 27a multiplied by applicable percentage. See instructions. Column: Property C.

Row: 27b. Line 27a multiplied by applicable percentage. See instructions. Column: Property D.

Row: 27c. Enter the smaller of line 24 or 27b. Column: Property A.

Row: 27c. Enter the smaller of line 24 or 27b. Column: Property B.

Row: 27c. Enter the smaller of line 24 or 27b. Column: Property C.

Row: 27c. Enter the smaller of line 24 or 27b. Column: Property D.

28. If section 1254 property: Row: a. Intangible drilling and development costs, expenditures for development of mines and other natural

Row: 28a. Intangible drilling and development costs, expenditures for development of mines and other natural deposits, mining exploration

Row: 28b. Enter the smaller of line 24 or 28a. Column: Property A.

Row: 28b. Enter the smaller of line 24 or 28a. Column: Property B.

Row: 28b. Enter the smaller of line 24 or 28a. Column: Property C.

Row: 28b. Enter the smaller of line 24 or 28a. Column: Property D.

29. If section 1255 property: Row: a. Applicable percentage of payments excluded from income under section 126. See instructions. Column:

Row: 29a. Applicable percentage of payments excluded from income under section 126. See instructions. Column: Property B.

Row: 29a. Applicable percentage of payments excluded from income under section 126. See instructions. Column: Property C.

Row: 29a. Applicable percentage of payments excluded from income under section 126. See instructions. Column: Property D.

29. If section 1255 property: Row: b. Enter the smaller of line 24 or 29a. See instructions. Column: Property A.

Row: 29b. Enter the smaller of line 24 or 29a. See instructions. Column: Property B.

Row: 29b. Enter the smaller of line 24 or 29a. See instructions. Column: Property C.

Row: 29b. Enter the smaller of line 24 or 29a. See instructions. Column: Property D.

30. Total gains for all properties. Add property columns A through D, line 24.

31. Add property columns A through D, lines 25b, 26g, 27c, 28b, and 29b. Enter here and on line 13.

32. Subtract line 31 from line 30. Enter the portion from casualty or theft on Form 4684, line 33. Enter the portion from other than

Section 179 expense deduction or depreciation allowable in prior years. Column: (a) Section 179.

Row: 33. Section 179 expense deduction or depreciation allowable in prior years. Column: (b) Section 280F(b)(2).

Row: 34. Recomputed depreciation. See instructions. Column: (a) Section 179.

Row: 34. Recomputed depreciation. See instructions. Column: (b) Section 280F(b)(2).

Row: 35. Recapture amount. Subtract line 34 from line 33. See the instructions for where to report. Column: (a) Section 179.

Row: 35. Recapture amount. Subtract line 34 from line 33. See the instructions for where to report. Column: (b) Section 280F(b)(2).

Lock the PDF after filling (values become permanent, fields are removed)

Processed on our own servers, never sent to a third-party service. Files are deleted automatically after two hours, and you can delete them sooner from the result screen.

Frequently asked questions

Do I use Form 4797 or Schedule D?

Property used in a trade or business generally goes on Form 4797 first. The form then routes any capital gain portion to Schedule D, while ordinary gain from depreciation recapture goes straight to your return as ordinary income.

What is depreciation recapture?

When you sell an asset you have depreciated, part of the gain, up to the depreciation you claimed, is taxed as ordinary income rather than capital gain. Part III of Form 4797 calculates that amount.

Does selling my home go on Form 4797?

Not usually. A personal residence belongs on Schedule D and Form 8949 if the gain is taxable. Form 4797 comes in only if part of the home was used for business or rented out and depreciated.

Form 4797, Sales of Business Property

What is 4797?

Who files 4797?

How to fill out 4797

Quick fill 4797 on this page

Frequently asked questions

Related forms

Form 8949, Sales and Other Dispositions of Capital Assets

Form 4684, Casualties and Thefts

Form 6252, Installment Sale Income