client sold his business and i showed the sale on 4797 is that the form andnot sch d
-
-
Depends on what was sold.
It's either a group sale of assets or a sale of the corporation stock.
Is it an installment sale or a sale of everything all at once.
The answer to these questions determine which form is used to report the sale and
how to report it.Uncle Sam, CPA, EA. ARA, NTPI Fellow -
It is not unusual for part of the sale profit to be reported on both Form 4797 and Schedule D, and also possibly on the installment sale form, as Uncle Sam mentioned. Form 4797 itself has multiple sections for reporting different types of sales.
You will need to identify the code sections that apply to the property sold, such as Sec 1250 or Sec 1245 or Sec 197 (amortizable intangibles).
If this is the first time you've done this, it's a good idea to seek a review of your work by a more experienced colleague. Also several IRS pubs may help, such as
Publication 537, Installment Sales
Publication 544, Sales and Other Dispositions of Assets
Publication 551, Basis of Assets
Publication 334, Tax Guide for Small Business
"You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe HowardComment
Comment