Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 1
posted Mar 20, 2022 1:31:41 PM

Why does it state I have a Sales of Business Property (Form 4797) when I didn't have any business property and nothing was sold?

I did have a vehicle that was used (3%) for business travel which I ultimately stopped using during the year after the car literally died (transmission). I had to dispose of the vehicle. But I didn't sell it.

0 6 1532
6 Replies
Expert Alumni
Mar 20, 2022 1:43:45 PM

You need to indicate that you converted it to personal use to avoid having it appear as a sale.

Level 1
Mar 20, 2022 2:09:38 PM

Thanks! Now it's asking about recapture information, which I don't have. Any additional advice?

Expert Alumni
Mar 21, 2022 12:40:23 PM

Please clarify exactly what the program is asking about recapture information. Is it a yes/no question? Or does it expect an amount?

Level 1
Mar 21, 2022 8:29:00 PM

Looking for an amount. Guessing I might need to write in $0 because there was no sale (it was disposed)? Never saw that before, but never had this issue either. 

Expert Alumni
Mar 22, 2022 7:42:52 AM

My guess would be that $0 would not be the correct amount if you had actually sold the vehicle.

 

Does your 2021 Federal 1040 tax return include an IRS form 4797?  If so, you may have reported the disposal of the vehicle as a sale.  Then the state software is also reporting the sale information on the state 4797 or equivalent form.  What state are you referring to?

 

When reporting the vehicle sale / disposal, at the screen Do any of these apply to the SUV?, did you select Your percentage of business use of the vehicle varied over the years

 

If you did not, you may be reporting the vehicle as sold and not disposed of.

 

 

Level 1
Mar 23, 2022 7:29:10 AM

Yes, it did include Form 4797, but it turns out it wasn't about the car at all. It was about a disposed COMPUTER that was 12 years old (and no longer worked). There was no sale information about the vehicle on the Form itself. 

 

Thanks for your help!