Section 15. Return of Partnership Income›3.12.15 Return of Partnership Income
Section 12 - Form 4797, Sales of Business Property
Internal Revenue Manual Part 3. Submission Processing · 2026-10-03 edition · updated 2026-10-04 · United States
Section 12 has data from Form 4797, Sales of Business Property. See Exhibit 3.12.15-5 for ERS field locations.
Field 121A¶
Fields 121A must be entered if Form 4797, Line 1a has an entry.
Invalid Condition - Fields 121A is invalid if:
The Tax Period is before 202501.
The field is not 15 numeric characters.
The field is negative.
Correction Procedures:
Correct coding errors, transcription errors, and misplaced entries.
If the Tax Period is before 202501, delete the field.
If a field is negative, delete the field.
If Line 1a is illegible, delete the field.
Field 121B and Field 121C¶
Field 121B and 121C must be entered if Form 4797, Lines 1b and 1c have an amount.
Invalid Conditions:
The field is not numeric, positive, and dollars only.
The field is more than 15 characters.
The tax period is before 201712.
Correction Procedures:
Correct coding errors, transcription errors, and misplaced entries.
If either field is negative, delete the field.
If the tax period is before 201712, delete the field.
If Lines 121B or 121C are illegible, delete the field.
Field 1207¶
must be entered if Form 4797, Line 7 has an entry.
Invalid Conditions:
The field is more than 15 characters.
The tax period is before 202501.
Correction Procedures:
Correct coding errors, transcription errors, and misplaced entries.
If the tax period is before 202501, delete the field.
If Line 7 is illegible, delete the field.
Field 1208 and Field 1209¶
Fields 1208 and 1209 must be entered if Form 4797, Line 8 or Line 9 has an entry.
Invalid Conditions:
The Tax Period is before 202501.
The field is not 15 numeric characters.
The field is negative.
Correction Procedures:
Correct coding errors, transcription errors, and misplaced entries.
If the Tax Period is before 202501, delete the field.
If a field is negative, delete the field.
If Line 8 or Line 9 is illegible, delete the field.
Field 1217 and Field 1218B¶
Fields 1217 and 1218B must be entered if Form 4797, Line 17 or Line 18a has an entry.
Invalid Condition:
The Tax Period is before 202501.
The field is not 15 numeric characters.
Correction Procedures:
Correct coding errors, transcription errors, and misplaced entries.
If the Tax Period is before 202501, delete the fields.
If Line 17 or Line 18a is illegible, delete the field.
Field 1218A¶
must be entered if Form 4797, Line 18a has an entry.
Invalid Condition:
The Tax Period is before 202501.
The field is not 15 numeric characters.
The field is negative.
Correction Procedures:
Correct coding errors, transcription errors, and misplaced entries.
If the Tax Period is before 202501, delete the field.
If Line 18a is illegible, delete the field.
Error Record Format¶
The field designators, title and location of the field are shown in the table below:
Field Designator
Field Length
Title
Positive/ Negative
Location on Form 4797
121A
15
Gross Proceeds from Sales or Exchanges from Forms 1099-B or 1099-S
1a
121B
15
Gain due to Partial Dispositions of MACRS Assets
1b
121C
15
Total Amount of Loss from Partial Dispositions of MACRS Assets
1c
1207
15
Total Gain or Loss Amount
+/-
7
1208
15
Non-recaptured net Section 1231 Losses from Prior Years Amount
8
1209
15
Total Gain Less Non-recapture Section 1231 Losses Amount
9
1217
15
Total Ordinary Gain or Loss Amount
+/-
17
1218A
15
Form 4684 Property Held Total Loss Amount
18a
1218B
15
Form 4797 Gain or Loss Minus Form 4684 Property Held Total Loss Amount
+/-
18b
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