Generally, gain from the sale or exchange of a capital asset held for personal use is a capital gain. According to the​ Schedule D instructions:Wayne Corporation is subject to State A's franchise tax. Use Form 4797 to report: The sale or exchange of property. The involuntary conversion of property and capital assets. The proprietorship or rental property conversion of MACRS property from business to personal use does not require immediate recognition of (a) gain or (b) loss. This is the easiest way to electronically fill out the forms and prevent losing any information that you've entered.