The sale is not one of three or more sales of tangible personal property (other than hay) for substantial amounts in any period of 12 months. 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.This Drake Tax article discusses the sale of an asset used for personal and business use. Use Form 4797 to report: The sale or exchange of property. The involuntary conversion of property and capital assets. If you sold business-use property during the year, you had a gain or a loss on the sale. Complete and file Form 4797: Sale of Business Property. The sale of a trade or business for a lump sum is considered a sale of each individual asset rather than of a single asset. When you sell your business, for tax purposes, you are actually selling a collection of assets. If you are using any 'personal' equipment in your business, then yes, it must be reported.