Part 1 is generally for items held more than 1 year sold at a loss
Part 3 is generally for items held more than 1 year sold at a gain.
see 4797 instructions
https://www.irs.gov/pub/irs-pdf/i4797.pdf
proper entry of the date sold, assuming date acquired, cost and depreciation are correct would result in TT placing the sale in the correct part. overriding TT would require you to paper file.
