Business equipment is purchased on March 10,2015,used in the business until September 29,2015,and sold at a $23,000 loss on October 10,2015.The equipment was not suitable for the work the business had purchased it for.The loss on the disposition should have been reported in the 2015 Form 4797,Part:
A)I.
B)II.
C)III.
D)IV.
E)This transaction would not be reported in the Form 4797.

Question

Quizplus · Accepted Answer

According to the information given, the business equipment was held for less than a year (from March 10, 2015, to October 10, 2015) and sold at a loss. Therefore, the loss on the disposition should be reported in Part II of the 2015 Form 4797 for "Ordinary Gains and Losses." This part of the form is used to report gains and losses from the sale or exchange of property used in a trade or business or for investment purposes.

Business Equipment Is Purchased on March 10,2015,used in the Business