In an asset sale the seller will deliver a bill of sale and lien discharges at the closing. Michigan business income subject to apportionment is to be reported on the MI-1040H, do not use this form to apportion those gains or losses.In an asset sale, the new owner purchases the business's physical assets. The seller retains all rights to the legal entity. Use Form 4797 to report: The sale or exchange of property. The involuntary conversion of property and capital assets. 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.