If you have not entered an asset for depreciation, the screen to enter a loss on Part II of IRS Form 4797 will not appear. If you need to enter a loss on Form 4797 Part II, use the instructions below to add the necessary information.

TaxACT Online:

  1. Click on the Forms tab on the right side of the screen, then select View complete Forms list
  2. Expand the Federal Forms folder
  3. Expand the Documents Received folder
  4. Scroll down and Select Sale of Business Property - Sale of Business Property 
  5. Click Add or Review to enter the information
  6. When entering the information, select Cost-sharing property (Sec. 1255)  for the Type of property. This section number is not reflected on Form 4797, but will cause the amount of loss to carry to Part II of Form 4797.

TaxACT Desktop:

  1. Click on the Forms icon in the toolbar
  2. Expand the Federal folder
  3. Expand the Documents Received folder
  4. Scroll down and double click Sale of Business Property - Sale of Business Property and then double click on the form you wish to review
  5. If a form is not already listed for you to review, double click Add Copy to complete a new form
  6. Check the box at the top of the form Part II to have the loss transferred to that part of Form 4797

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