Report gain when depreciation is recaptured on Form 4797

If you have a long-term gain from a casualty or theft of depreciable property, you may need to recapture the gain as ordinary income. Follow these steps to report the gain on Form 4797, Part III.
  1. Go to the
    4684B
    screen.
  2. Enter
    X
    in the
    Gain reported on Form 4797, Part III
    field.
  3. Go to the
    Sale
    screen.
  4. Enter
    X
    in the
    Disposition due to casualty / theft
    field.
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