Bulk Sale for a 1065 or 1120-S isn't showing on 4797

When a bulk sale is not generating on Form 4797 for a Partnership or S-Corporation, the most common cause is one or more of the assets in the sale containing prior Section 179.

Sales of assets that have prior Section 179 aren't reported by the business, and are instead passed to the partner/shareholder on the K-1. The program follows this rule automatically. If a bulk sale includes assets with prior Section 179, it's handled as a sale of 179 assets and reported on the K-1s.

If the sale needs to appear on Form 4797, or other disposition forms, you will need to remove the assets that have Section 179 from the bulk sale. When there are several assets with prior Section 179, we typically see preparers create two bulk sales. One for the Section 179 assets, and one for the remaining assets.