Reconciling the 4797

The 4797 in Sage Fixed Assets-Depreciation is a worksheet. To obtain the 4797 form visit the IRS website.

Note: If there are no disposals for the year, the 4797 report will be empty. The parts of the worksheet won’t show because there’s no information to report. If there are disposals in the year and assets are missing, ensure:

• The Tax book for the asset(s) is depreciated to the year end to show on the 4797. Verify the Current Through Date for your assets
• Assets have Recognize Gain or Loss? set to Yes. Assets with Recognize Gain or Loss? set to No won’t appear on the report. See How to edit a disposal for more information

Assets must meet the following criteria to appear in the following sections of the 4797:

Part I:

• Asset is disposed of in the current fiscal year
• Asset is held for more than 1 year
• Disposal method is Sale or Other
• There is no gain on the asset Gain/Loss < $0.00

Part II:

• Asset is disposed of in the current fiscal year
• Asset is held for less than 1 year
• The asset's Gain/Loss can be any value.
  OR
• Asset is disposed of in the current fiscal year
• Asset is held for more than 1 year
• Disposal method is Abandonment
• Gain/Loss = $0.00

Part III:

• Asset is disposed of in the current fiscal year
• Asset is held for more than 1 year
• Disposal method is Sale, Abandonment, Casualty, or Other
• The asset is disposed with a gain, Gain/Loss > $0.00