Use Schedule D-1 to report the sale or exchange of business property when the California basis of the asset(s) is different from the federal basis. Complete Part I if the corporation elects IRC Section 179 expense.When looking at form 4797, it put the sale price of the piece of equipment as a gain on sell of asset. Section 179 allows eligible taxpayers to deduct in full certain business expenses, or "qualifying property," in a single tax year. If you sold or exchanged a qualified community asset acquired after 2001 and before 2010, you may be able to exclude the "qualified capital gain. Yes, you must still report the sale of any business asset to the IRS, regardless of whether you've profited or not or owe taxes. This publication explains how you can recover the cost of business or income-producing property through deductions for depreciation. How to report the recapture of Sec. 179 expense for passthrough entities at both the entity and owner levels. Businesses may be able to combine bonus depreciation and Section 179 deductions to claim both deductions in the same tax year.