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Instructions for Filling Out Form 4797 Report section 1231 gains and losses in Part I. Report gains and losses from casualty and theft in Part II. Report recapture amounts for section 179 or 280F(b)(2) in Part III. Indicate the correct asset class (e.g. 1245 property, 1250 property, etc.)
The gain or loss from each security or commodity held in connection with your trading business (including those marked to market) is reported on Form 4797, Part II, line 10.
Whereas Schedule D forms are used to report personal gains, IRS Form 4797 is used to report profits from real estate transactions centered on business use. IRS Form 4797 has much more specific utilization, while Schedule D is a required form for anyone reporting personal gains in general.
To oversimplify, Schedule D is for reporting capital gains and losses on investment property, such as stocks, bonds, and mutual funds. Form 4797 is for reporting the sale of capital assets, such as equipment your business used to produce goods or sell services to the public.
Use Form 4797 to report: The sale or exchange of property. The involuntary conversion of property and capital assets. The disposition of noncapital assets.

People also ask

A sale of a partnership interest requires two transactions: An ordinary income gain/loss reported on Form 4797, Part II, line 10. A capital gain reported on the Schedule D.
Use Schedule D (Form 1040) to report the following: The sale or exchange of a capital asset not reported on another form or schedule. Gains from involuntary conversions (other than from casualty or theft) of capital assets not held for business or profit.