Part II of Form 4797 Is Used to Report Gains

question 59

True/False

Part II of Form 4797 is used to report gains from the sale of depreciable business equipment sold at a gain and held more than one year.

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Definitions:

Head of Household

A filing status for individual U.S. taxpayers who are unmarried and pay more than half the cost of maintaining a home for themselves and a qualifying person.

Total Income

The sum of all earnings or revenues received by an individual or organization, before any deductions or taxes.

Total Deductions

The sum of all the amounts subtracted from gross income to reduce taxable income, including tax, social security contributions, and other withholdings.

Tax Withheld

The portion of an employee's wages that is not included in their paycheck because it is sent directly to the government as partial payment of their annual income tax.