Form 4797 - Building and Land?

[LorianneH]

Using Form 4797 for the sale of business property, would the building and land be broken out into separate properties? Would the tax rates on the gain be treated differently for the building and land?

Thanks.

[Max W]

That's one way to do it. You can also use Bulk Disposition on the Asset page, if you can figure out how to use it.

[MDCPA]

From 4797 Instructions:

"If you disposed of both depreciable property and other property (for example, a building and land) in the same transaction and realized a gain, you must allocate the amount realized between the two types of property based on their respective fair market values (FMVs) to figure the part of the gain to be recaptured as ordinary income because of depreciation. The disposition of each type of property is reported separately in the appropriate part of Form 4797(for example, for property held more than 1 year, report the sale of a building in Part III and land in Part I)."