Enter Ordinary Gains and Losses, Form 4797 Part II

[Traci1]

Some of the assets sold with my business were owned under one year (and expensed) or otherwise need to be reported as Ordinary Gains and Losses. However, when I fill out the information for sale of business assets, and report the date acquired and date sold as within the same year, they show up under Part III. Turbotax then tells me in the check that there is an error, because they need to be reported on page 1 since they have been owned less than 1 year!

How do I report them in Turbotax so they end up on Form 4797 Part II?

Thank you!

[tagteam]

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I believe the issue you are seeing is the result of checking the incorrect box for the transaction. You should check the Section 179 recapture box as shown in the screenshot below.

[Traci1]

Unfortunately that didn't quite capture the issue. The next screen asked about change in use, which is not the case, and reviewing the help section on recapture clarified that this is not the situation I'm trying to address.

Thank you though.

If your business use of property on which you claimed the section 179 deduction fell to 50% or less for the first time in 2018, enter the following information about this property. See section 179 recapture for help in determining the amounts to enter here.

[tagteam]

Enter an asset in Sale of Business Property section (even if you have to fabricate a transaction), and you will eventually get to a screen like the screenshot below. Note that you can always go back and delete the asset you entered in order to get to the appropriate screen.

[Traci1]

Thanks for the feedback. I have the Self-employed edition and for me anyway, the answer ended up being to search for Schedule C and click Go To...  (I believe I could've also gotten there through business income/expenses). Then select uncommon expenses, and then:

[fjgenet]

I have an ordinary gain from an investment in a limited partnership which has to be entered on form 4797. How do I do that in the turbo tax software?

[DaveF1006]

It depends. If it is entered as an ordinary gain on a K1, the information will populate in the return and generate a 4797, if required.

[nguyenhk]

hope it's ok to piggy back on this same question

I did not receive any K1 but I did receive and import the 1099-B statements I had and they all imported into Form 8949 as capital gains/losses. 

I made the MTM selection for 2020 when I filed my 2019 return so for my 2020 return I want to report these as "ordinary" gains/losses, however I cannot seem to edit Form 4797 Part II, any advice here?

[TSLO2008]

I made a MTM election as well and am trying to reach 4797 Part II.  I trade Forex only.  Instructions for Form 4797 state the data should be input into Part II only.

[GeorgeM777]

@TSLO2008   The TurboTax application does not support the import of Form 1099-B with values in boxes 8, 9, 10, and 11.  If values are reported in boxes 8, 9, 10, and 11 on Form 1099-B, or similar statement, manual entry is required.  

To begin manual entry of your Forex trades, go to the Wages & Income section.  Scroll down to the section Investment Income and select Contracts and Straddles.  Continue through the program and you will get to a page wherein you will be asked whether you wish to enter your transactions separately.  Select yes, and enter the relevant information for each transaction.  

[Knap]

I was able to get it to work by opening the Form 4797 from the Forms view, rather than Step by Step.  From there, you can enter the summary on the Smart Worksheet that pops up.  In the final column labeled "PT", choose "II" (two).  From there as you scroll through the form you can see it populates Part II Ordinary Gain/Loss from the summary you entered on the smart worksheet.  For your summary, you can enter Short Term reported on a line, ST not report, etc. and same for Long Term.  For e-filing, I'm not sure if we need to include the 1099-B as a "statement" though.

[AmyC]

When you do a summary, the program will tell you to mail the 8453 and any attachments needed, like the 1099-B.

@Knap