The instructions for Form 1120-S, Page 1, (Net gain (loss) from Form 4797) state, "Corporations should not use Form 4797 to report the sale or other disposition of property if a section 179 expense deduction was previously passed through to any of its shareholders for that property. Instead, report the information in Box 17 of Schedule K-1 using Code K, disposition of property with section 179 deductions.
As mentioned by @AbrahamT In the business income section of TurboTax you will have the option to Choose Dispose of Business Property. When you work through that section TurboTax will automatically pick up prior year section 179 if any and properly account for it when you enter your sales information. The sale will be reported on a supplemental schedule attached to the shareholder's K-1 form which is called the Shareholders disposition report for all assets with sect 179 expenses taken.
See IRS Instructions below:
Click on IRS.Gov. Search Form 4797 and review the sale of section 179 property section:
Form 4797
@CarolC
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