Form 4797

AAA

DEFINITION of 'Form 4797'

A tax form distributed by the Internal Revenue Service (IRS) and used to report gains made from the sale or exchange of business property. Business property may refer to property purchased in order to produce rental income or a home that was used as a business. Gains made from the sale of oil, gas, geothermal or mineral properties are also reported on Form 4797. If a piece of property was used for business purposes or to produce income while also serving as a primary residence, gains from the sale of that property may be eligible for exclusion.

INVESTOPEDIA EXPLAINS 'Form 4797'

Depending on how a piece of property was used (outlined in IRS Publication 463, Section 179), depreciation or amortization may adjust the value of the property. When a business, such as a partnership or an S Corporation, sells property, partners and shareholders may experience a gain or loss.

RELATED TERMS
  1. IRS Publication 523

    A document published by the Internal Revenue Service (IRS) that ...
  2. IRS Publication 463: Travel, Entertainment, ...

    A document published by the Internal Revenue Service that provides ...
  3. Internal Revenue Service - IRS

    A United States government agency that is responsible for the ...
  4. Corporate Tax

    A levy placed on the profit of a firm, with different rates used ...
  5. Investment Real Estate

    Real estate that generates income or is otherwise intended for ...
  6. Peter Pan Syndrome

    A regulatory environment in which firms prefer to stay small ...
Related Articles
  1. Trade Properties To Keep The Taxman ...
    Active Trading

    Trade Properties To Keep The Taxman ...

  2. Avoid Capital Gains Tax On Your Home ...
    Taxes

    Avoid Capital Gains Tax On Your Home ...

  3. Real Estate Vs. Stocks: Which One's ...
    Home & Auto

    Real Estate Vs. Stocks: Which One's ...

  4. Rent To Own; Own To Rent
    Options & Futures

    Rent To Own; Own To Rent

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center