Question

On what part of Form 4797 would gain derived from depreciation on the sail of a copier used in an accounting firm be reported? The was purchased in 2016 and sold in 2019. 1. Part I. 2. Part II. 3. Part III. 4.Part IV

Answer 1

Option 3)Part III

Capital assets held for more than a year and sold for a profit fall in the section labeled Part III,for an Accounting firm Copier would considered as an Capital asset which derived gain from the sale of it.

Why Not Other Options?

Option 1)most depreciable property held for more than a year is recognized under Part I: Sales or Exchanges of Property Used in a Trade or Business and Involuntary Conversions From Other Than Casualty or Theft.

In this matter its considered as an casual transfer and doesn't mentioned about GAIN OR LOSS in this Part, Which WERE mentioned in PART III

Option 2)Property held for a year or less and sold for a loss is recorded in Part II,which doesn't fits here, as it takes 3 years to sale after purchase

Option 4)Part IV is labeled Recapture Amounts Under Sections 179 and 280F(b)(2): When Business Use Drops to 50% or Less.Which also doesn't suit for respective circumstances