You will need to allocate the amount reflected on form 8594 among all the assets. A typical method is to allocate the proceeds based on the original cost.Use Form 4797 to report: The sale or exchange of property. The involuntary conversion of property and capital assets. Determining gain or loss: The form is used to calculate and report the gain or loss realized from the sale or exchange 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. • Is the transaction of the sale capital in nature or ordinary income? • What parts of the Form 4797 Sale of Business. It is used to report the sale or exchange of assets that were used in your Trader business.