How can I generate Form 4797?
To generate Form 4797, use one of the following methods:
- Method 1: To generate Form 4797 from the 4562 screen, use the IF SOLD section of the screen. Date Sold and Property Type are required entries.
- Method 2: Enter only a Date Sold on the 4562 screen, then complete the 4797 screen. Be sure to include allowed or allowable depreciation.
- Method 3: Enter data on the 4562 to recapture Section 179 expenses claimed. This method is used for assets that have not been sold, but for which business use has dropped to 50% or less. The checkbox "Recapture because business use dropped to 50% or less" must be checked on screen 4562 in order for Part IV of the form to populate.
Note: If the 4562 is being used to report depreciation related to Form 8829, and the home was sold, Form 4797 will not be generated for that asset from entries made on the if sold section. A sale of the taxpayer's home should be reported on the HOME screen instead. Enter only the date sold on the 4562 screen for the taxpayer's home (where 8829 has been chosen in the For box).
For more information on Form 4797, see the Instructions for Form 4797.