topic Re: Question about form 4797 in Get your taxes done using TurboTax

Question about form 4797

itsweigel — Mon, 29 Nov 2021 02:13:47 GMT

Let’s say I sold machinery for $4000 but I bought it for $10000 that I had for 5 years and it was fully depreciated. What would I put in lines d,e,f, and g or form 4797?

Re: Question about form 4797

Anonymous_ — Mon, 29 Nov 2021 03:01:52 GMT

Are you actually trying to prepare a return, including Form 4797, manually? I am not sure anyone would recommend that approach.

Regardless, if your gross sales price is $4,000 then that would be entered in columns (d) and (g). The $10,000 purchase price and accumulated depreciation would be entered in columns (e) and (f). Note that the foregoing assumes that there was no salvage value.

Re: Question about form 4797

Critter-3 — Mon, 29 Nov 2021 12:35:27 GMT

If the item was fully depreciated your current cost basis is zero so it is a fully taxable sale.

Re: Question about form 4797

Anonymous_ — Mon, 29 Nov 2021 16:14:15 GMT

@Critter-3 is correct about this entry; you would enter this in Part III of Form 4797 as Section 1245 property that has been fully depreciated @itsweigel.