Question about form 4797

[itsweigel]

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?

[Anonymous_]

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.

[Critter-3]

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

[Anonymous_]

@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.