Use Form 4797 to report: The sale or exchange of property. The involuntary conversion of property and capital assets.Use Part III of Form 4797 to figure the amount of ordinary income recapture. The recapture amount is included on line 31 (and line 13) of Form 4797. Section 179 is an immediate expense deduction business owners take for purchases of depreciable business equipment instead of capitalizing an asset. This item addresses how S corporations and partnerships that have a Sec. 179 recapture event should report the event to their owners. Section 179 of the Internal Revenue Code allows businesses to deduct the full cost of qualifying property in the year it's placed in service. Section 179 helps your business purchase more equipment and boost its operations without taking money away from the tax revenue.