Business equipment is purchased on March 10, 2017, used in the business until September 29, 2017, and sold at a $23,000 loss on October 10, 2017. 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 2017 Form 4797, Part:

Question

Quizplus · Accepted Answer

The loss on the disposition of business equipment should be reported in Part II of Form 4797, which is for the sale of business property. The fact that the equipment was not suitable for the business does not affect the reporting requirements.

Business Equipment Is Purchased on March 10, 2017, Used in the Business