Form 4797

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.



comments powered by Disqus
Hot Definitions
  1. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific benchmark, such as a SPDR. Unlike actively managed ETFs, passive ETFs are not managed by a fund manager on a daily basis.
  2. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another market so that it balances out. So when examining a specific market, if all other markets are in equilibrium, Walras' Law asserts that the examined market is also in equilibrium.
  3. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action. Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another.
  4. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following:
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option is purchased and the lower premium option is sold - both at the same time. The higher the debit spread, the greater the initial cash outflow the investor will incur on the transaction.
  6. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious debt when government leaders use borrowed funds in ways that don't benefit or even oppress citizens. Some legal scholars argue that successor governments should not be held accountable for odious debt incurred by earlier regimes, but there is no consensus on how odious debt should actually be treated.
Trading Center