Moab Inc. manufactures and distributes high-tech biking gadgets. It has decided to streamline some of its operations so that it will be able to be more productive and efficient. Because of this decision it has entered into several transactions during the year.(Do not round intermediate computations.)
- Moab Inc. sold a machine that it used to make computerized gadgets for $27,300 cash. It originally bought the machine for $19,200 three years ago and has taken $8,000 in depreciation.
- Moab Inc. held stock in ABC Corp., which had a value of $12,000 at the beginning of the year. That same stock had a value of $15,230 at the end of the year.
- Moab Inc. sold some of its inventory for $7,000 cash. This inventory had a basis of $5,000.
- Moab Inc. disposed of an office building with a fair market value of $75,000 for another office building with a fair market value of $55,000 and $20,000 in cash. It originally bought the office building seven years ago for $62,000 and has taken $15,000 in depreciation.
- Moab Inc. sold some land held for investment for $28,000. It originally bought the land for $32,000 two years ago.
- Moab Inc. sold another machine for a note payable in four annual installments of $12,000. The first payment was received in the current year. It originally bought the machine two years ago for $32,000 and has claimed $9,000 in depreciation expense against the machine.
- Moab Inc. sold stock it held for eight years for $2,750. It originally purchased the stock for $2,100.
- Moab Inc. sold another machine for $7,300. It originally purchased this machine six months ago for $9,000 and has claimed $830 in depreciation expense against the asset.
Complete Moab Inc.'s Form 4797 for the year.
enter the required values in the appropriate fields.
4797 Sales of Business Property OMB No. 1545-0184 Form (Also Involuntary Conversions and Recapture Amounts Under Sections 179 and 280F(b)(2)) 2018 Department of the Treasury Attach to your tax return. Attachment Internal Revenue Service Go to www.irs.gov/Form4797 for instructions and the latest information. Sequence No. 27 Name(s) shown on return Identifying number Enter the gross proceeds from sales or exchanges reported to you for 2018 on Form(s) 1099-B or 1099-S (or substitute statement) that you are including on line 2, 10, or 20. See instructions Part I Sales or Exchanges of Property Used in a Trade or Business and Involuntary Conversions From Other Than Casualty or Theft-Most Property Held More Than 1 Year (see instructions) (e) Depreciation (f) Cost or other 2 (a) Description (b) Date acquired (c) Date sold (d) Gross allowed or basis, plus (g) Gain or (loss) of property (mo., day, yr.) (mo., day, yr.) sales price allowable since improvements and Subtract (f) from the acquisition expense of sale sum of (d) and (e) Gain, if any, from Form 4684, line 39 . . . _. Section 1231 gain from installment sales from Form 6252, line 26 or 37 . Section 1231 gain or (loss) from like-kind exchanges from Form 8824 Gain, if any, from line 32, from other than casualty or theft Combine lines 2 through 6. Enter the gain or (loss) here and on the appropriate line as follows . Partnerships and S corporations. Report the gain or (loss) following the instructions for Form 1065, Schedule K, ine 10, or Form 1120S, Schedule K, line 9. Skip lines 8, 9, 11, and 12 below. Individuals, partners, S corporation shareholders, and all others. If line 7 is zero or a loss, enter the amount from line 7 on line 11 below and skip lines 8 and 9. If line 7 is a gain and you didn't have any prior year section 1231 losses, or they were recaptured in an earlier year, enter the gain from line 7 as a long-term capital gain on the Schedule D filed with your return and skip lines 8, 9, 11, and 12 below. B Nonrecaptured net section 1231 losses from prior years. See instructions . 8 Subtract line 8 from line 7. If zero or less, enter -0-. If line 9 is zero, enter the gain from line 7 on line 12 below. If line 9 is more than zero, enter the amount from line 8 on line 12 below and enter the gain from line 9 as a long-term capital gain on the Schedule D filed with your return. See instructions Part II Ordinary Gains and Losses (see instructions 10 Ordinary gains and losses not included on lines 11 through 16 (include property held 1 year or less): 11 Loss, if any, from line 7 . . . . . . 11 Gain, if any, from line 7 or amount from line 8, if applicable 12 Gain, if any, from line 31 . . 13 Net gain or (loss) from Form 4684, lines 31 and 38a 14 Ordinary gain from installment sales from Form 6252, line 25 or 36 15 16 Ordinary gain or (loss) from like-kind exchanges from Form 8824 16 7 Combine lines 10 through 16 . 17 For all except individual returns, enter the amount from line 17 on the appropriate line of your return and skip lines a and b below. For individual returns, complete lines a and b below. a If the loss on line 11 includes a loss from Form 4684, line 35, column (b)(ii), enter that part of the loss here. Enter the loss from income-producing property on Schedule A (Form 1040), line 16. (Do not include any loss on property used as an employee.) Identify as from "Form 4797, line 18a." See instructions . 18a b Redetermine the gain or (loss) on line 17 excluding the loss, if any, on line 18a. Enter here and on Schedule 1 (Form 1040), line 14 18b For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 130861 Form 4797 (2018)Form 4797 (2018) Page 2 Part III Gain From Disposition of Property Under Sections 1245, 1250, 1252, 1254, and 1255 (see instructions 19 (a) Description of section 1245, 1250, 1252, 1254, or 1255 property: (b) Date acquired (c) Date sold (mo., (mo., day, yr.) day, yr. A B Property A Property B Property C Property D These columns relate to the properties on lines 19A through 19D. 20 Gross sales price (Note: See line 1 before completing.) 20 21 Cost or other hasis plus expense of sale . 21 22 Depreciation (or depletion) allowed or allowable. 22 23 Adjusted basis. Subtract line 22 from line 21. 23 Total gain. Subtract line 23 from line 20 . 24 25 If section 1245 property: a Depreciation allowed or allowable from line 22 25a b Enter the smaller of line 24 or 25a. 25b 26 If section 1250 property: If straight line depreciation was used, enter -0- on line 26g, except for a corporation subject to section 291. a Additional depreciation after 1975. See instructions 26a b Applicable percentage multiplied by the smaller of line 24 or line 26a. See instructions. . 26b c Subtract line 26a from line 24. If residential rental property or line 24 isn't more than line 26a, skip lines 26d and 26e 26c d Additional depreciation after 1969 and before 1976. 26d e Enter the smaller of line 26c or 26d 26e f Section 291 amount (corporations only) . 26f g Add lines 26b, 26e, and 26f 26g 27 If section 1252 property: Skip this section if you didn't dispose of farmland or if this form is being completed for a partnership. a Soil, water, and land clearing expenses 27a b Line 27a multiplied by applicable percentage. See instructions 27b c Enter the smaller of line 24 or 27b 27c 28 If section 1254 property: a Intangible drilling and development costs, expenditures for development of mines and other natural deposits, mining exploration costs, and depletion. See instructions 28a b Enter the smaller of line 24 or 28a. 28b If section 1255 property: a Applicable percentage of payments excluded from Income under section 126. See instructions . . 29a b Enter the smaller of line 24 or 29a. See instructions 29b Summary of Part III Gains. Complete property columns A through D through line 29b before going to line 30 30 Total gains for all properties. Add property columns A through D, line 24 30 31 Add property columns A through D, lines 25b, 269, 27c, 28b, and 29b. Enter here and on line 13 31 Subtract line 31 from line 30. Enter the portion from casualty or theft on Form 4684, line 33. Enter the portion from other than casualty or theft on Form 4797, line 6 . . 32 Part IV Recapture Amounts Under Sections 179 and 280F(b)(2) When Business Use Drops to 50% or Less (see instructions (a) Section b) Section 179 280F(b)(2) Section 179 expense deduction or depreciation allowable in prior years. 33 34 Recomputed depreciation. See instructions . 34 35 Recapture amount. Subtract line 34 from line 33. See the instructions for where to report 35 Form 4797 (2018)
