Introduction When you dispose of property used in your farm business, yourtaxable gain or loss is usually a section 1231 gain or loss. Itstreatment as ordinary income, which is taxed at the same rates aswages and interest income, or capital gain, which is generally taxedat lower rates, is determined under the rules for section 1231transactions. Alojamiento descontado LevocaWhen you dispose of depreciable property (section 1245 property orsection 1250 property) at a gain, you may have to recognize all orpart of the gain as ordinary income under the depreciation recapturerules. Any remaining gain is a section 1231 gain, which may be taxedas a capital gain. hotel rooms EssenGains and losses from property used in farming are reported on Form4797. Table 11-1 shows examples of items reported onForm 4797 and refers to the part of that form on which they firstshould be reported. Chapter 20,Sample Return, shows asample filled-in Form 4797.