You have both Section 1250 and 1231 gains from this transaction.
Capital gains on certain section 1250 property are subject to a maximum capital gains tax rate of 25%.
Unrecaptured Section 1250 gain is long-term capital gain, not otherwise recaptured as ordinary income. This type of income is attributable to prior depreciation of real property that was held for more than one year.
Review the documents you received with your Schedule K-1 for information about how much of the gain from the sale would be considered Section 1250 gain, if any.
So no, this reporting is correct so don't delete your 4797 because this is reported correctly.
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