I have to file a form 4797.Is it available in Deluxe, Premier or home/business turbo tax

[Rachel_W · Accepted solution]

TurboTax CD/Download versions Deluxe, Premier, and Home/Business all include Form 4797.

The TurboTax Online versions that include Form 4797 are Premier and Self-Employed.

[knightrentals]

I have TT Business 2019. I can't find where to add information about two houses our LLC built and sold. I know it ends up on 4797 Sale of Business Property but I don't the which question in TT Business triggers the form to be added to my return. Can anyone help me?

[DavidS127]

If your LLC is a construction business, i.e., you build houses under contract (or spec) and sell them, that is "property held primarily for sale to customers in the ordinary course of your trade or business". The sale of that type of property is not reported on Form 4797.  The sales proceeds are income, and the cost of the house is a deduction, and the difference is ordinary income.

See IRS Publication 3780 at this link for information on accounting methods for small construction businesses.  You probably are eligible to use the "completed contract" method for construction, under which you would report income and deduct all your expenses in the year a house is sold.  

[spencer00]

hi, i used form 4797 in turbotax. but i found the gain went to sh C as income instead of going to business income . how to deal with ? my understanding the gain from form 4797 can be accounted into business income . thx

[PatriciaV]

@spencer00

Please clarify where in TurboTax you entered your sale information. If you sold business property, the sale would be reported on Schedule C. But if you sold something else, please advise.

[VolvoGirl]

Schedule C is for business income.  

[spencer00]

Use “ sale of business property “ to make form 4797. Pls see pictures. In business income part . Can’t make form 4797 . Any suggestions 

[spencer00]

Stock day trade with mark to market . Per turbotax, you have to use form 4797 from “ sale of business property “ in less common business situations. Not sure why the gain entered automatically to Sch d 

[RolloM]

Using Turbotax home and business. I cannot find a way to add Form 4797 information on sales of business assets (to offset gross income report on form 1099-K). These were regular assets, not depreciated ones.  

[AliciaP1]

First, you will need to change the entry of your 1099-K to only report income not related to the asset sales.  If the entire 1099-K was for asset sales you will need to delete the form completely.

To do this in TurboTax Home & Business you can follow these steps:

1. Within your tax return, on the Business tab and under Business Income and Expenses click I'll choose what I work on.
2. Click Update for Profit or Loss from business.
3. Click Edit for the business that has the 1099-K.
4. Click Update for Business Income and Update for 1099-K Income.
5. Click the trash can icon for the form and confirm the deletion.

To enter the sales of non-depreciated business assets in TurboTax Home & Business you can follow these steps:

1. Within your tax return, on the Business tab and under Business Income and Expenses click I'll choose what I work on.
2. Scroll down to Sales of Business Property in the Less Common Business Situations and click Start.
3. Choose the box for Sales of business or rental property that you haven't already reported.
4. Click No (since you mentioned they are not depreciated assets) and Yes
5. Enter the details for each asset sale

[RolloM]

The IRS has the 1099-K information. Deleting it will not solve anything. The IRS will still count this as business income. 

[ErnieS0]

If I’m understanding your question correctly, you received Form 1099-K for the sales of business assets and want to offset the gross income.

In that case, do not enter Form 1099-K in the Form 1099-K section. Enter it as the gross sales price for your assets in Sales of business property.

1. Type sale of property in Search (magnifying glass) in the top right corner.
2. Tap Jump to sale of property.
3. On “Any Other Property Sales” select Sales of business or rental property that you haven’t already reported, then Continue.
4. Answer Yes or No on "Sales of Business or Rental Property."
5. On "Sales of Business or Rental Property" – Enter the following information about your sale, use the Form 1099-K Box 1a amount as the Gross Sales Price.

@RolloM