A business sale transaction can take several forms: (1) sale of assets, (2) sale of stock, (3) merger, ( 4) consolidation, or (5) share exchange. Use Form 4797 to report: The sale or exchange of property.The involuntary conversion of property and capital assets. The Michigan Supreme Court held that for the former Michigan Business Tax, gain from a significant asset sale is treated as business income. 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. In an asset sale, the new owner purchases the business's physical assets. The seller retains all rights to the legal entity. A profit gained from selling a capital asset is referred to as capital gains. This could be an investment like a stock or an asset like a business.