If you sell, close, or discontinue business operations within Los Angeles, you must notify the City of Los Angeles, Office of Finance. If you are filing your final return and reporting the sale of the business assets, see the last bullet under "Line 2.Purchases Subject to Use Tax." 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. Use Form 4797 to report: The sale or exchange of property. The involuntary conversion of property and capital assets. This Drake Tax article discusses the sale of an asset used for personal and business use. Assessor Jeff Prang and his staff walk you step-by-step on how to prepare a Business Personal Property Statement, Form 571-L.