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.
- Go to the4684Bscreen.
- EnterXin theGain reported on Form 4797, Part IIIfield.
- Go to theSalescreen.
- EnterXin theDisposition due to casualty / theftfield.noteWhen you recapture the gain, the capital portion reports on Form 4684, line 33. The ordinary portion of the gain reports on Form 4797, line 13.
