How to File IRS Form 4797 Sale of Business Use Vehicles

If you sell property in connection with your trade or business, you may be required to report the sale or exchange and any potential gains/losses on IRS Form 4797.
The Form 4797 is most commonly used to report the sale of real property (Section 1250 property) and personal property (Section 1245 property). In this example, we cover a situation where an S corporation sells two vehicles used in its business.
For some other videos covering Form 4797 and other tax issues on the sale of business property, see below:
Section 1231 Gains on Sale of Rental: • How to File IRS Form 4...
Section 1250 Depreciation Recapture: • Real Estate Depreciati...
Nonrecaptured 1231 Losses: • How to File IRS Form 4...
Avoid Capital Gains with QOF Investment: • Avoid Capital Gains Ta...
$3,000 Capital Loss Limits: • Capital Loss Tax Deduc...
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#Form4797 #Form1120S #BonusDepreciation

[@Bojerthe]

I learn alot from this great gentleman. Well spoking, clear, and to the point without trying to be funny.

[@al-yemenimarket2747]

Thank you! Very helpful

[@JasonDKnott]

Thanks for watching!

[@damiangaitan7870]

Awesome! Thanks Jason! Question about the 1120 s balance sheet side in the 80% use vehicle. If the loan was made in the personal name (not the business), at the time of purchase, that debt would not be recorded in the 1120s side, and vice versa correct?

[@chloemichelle7335]

Thanks Jason, great video as always. Question for you. In your example for the Yukon with 80% business use, if it is owned by the S corp, shouldnt it be depreciated 100% for the business, and the 20% personal use included in the S Corp members W2 pay? I realize this is for example purposes, im just trying to learn for my own situation. Thank you again!

[@mackadams3205]

Thanks Jason! Question: If I sell a vehicle that is financed for more than the owed principle, where do I include the net gain on Form 4797?

[@hasheru2768]

For vehicle loss that was totalled due to accident with insurance proceeds, do i have to complete form 4684 as well?

[@Candaces8484]

Thank you for your explanation, so does that mean the business essentially show profit of $87,000 from the sale of the two vehicles?

[@victoramor]

i sold a rental property sept of 2024 where i estimate i will pay like $70K. when i do my filing on April 2025, will i be charged with penalty for not paying the taxes out right when i received the proceeds of the sale on sept of 2024. if i will be penalized i want to pay now so i can avoid the penalty. i would appreciate anyone's comment.