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Form 4797 Sales of Business Property 2006. Summary: This is an example of Form 4797 (2005) as pertains to the text. The completed line items are:

“Name(s) shown on return” field contains Charles and Lily Woods

“Identifying number” field contains 123-00-4567

Under “Part I: Sales or Exchanges of Property Used in a Trade or Business and Involuntary Conversions From Other Than Casualty or Theft--Most Property Held More Than 1 Year”:

“2(a) Description of property” field contains Land from Activity A (From passive activity)

“2(b) Date acquired (month, day, year)” field contains 1-4-92

“2(c) Date sold (month, day, year)” field contains 1-5-06

“2(d) Gross sales price” field contains 6,000

“2(f) Cost or other basis, plus improvements and expense of sale” field contains 3,224

“2(g) Gain or (loss) Subtract (f) from the sum of (d) and (e)” field contains 2,776

“7. Combine lines 2 through 6. Enter the gain or (loss) here and on the appropriate line as follows:” field contains 2,776