U.S. · Tax forms
Form 4797 line 10, ordinary gains and losses.
What belongs on the catch-all line of Part II, and the special entries the IRS wants in column (a).
Line 10 (“Ordinary gains and losses not included on lines 11 through 16 (include property held 1 year or less)”) is the catch-all of Part II. It takes ordinary gains and losses that have no line of their own, including property held 1 year or less, and several items the instructions name, each with its own column (a) wording.
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What the 2025 Form 4797 says
| Item | Meaning | What the IRS says |
|---|---|---|
| Property held 1 year or less | Line 10 | Report on line 10 ordinary gains and losses, not included on lines 11 through 16, including gains and losses from property held 1 year or less |
| Income from de minimis safe harbor property | Line 10 | If you receive ordinary income from a sale or other disposition of property and deducted its cost under the tangible property de minimis safe harbor, report the income on line 10 |
| Qualifying abandonment loss | Line 10 | Deduct the loss from a qualifying abandonment of business or investment property on line 10; see Abandonments in Pub. 544 |
| Deferred gain, section 451(k) | Line 10, 1/8 per year | Enter “Deferred gain under section 451(k)” in column (a) and 1/8 of the deferred gain in column (g), for qualifying electric transmission property sold before January 1, 2008 (before January 1, 2021, for a qualified electric utility) |
| Mark-to-market trader | Line 10 with a statement | Enter “Trader—see attached” in column (a) and the totals from the attached statement in columns (d), (f) and (g) |
| Small business investment company stock | Line 10 ordinary loss | Report ordinary losses from the sale or exchange (including worthlessness) of SBIC stock under section 1242, with a statement naming the company and, if applicable, the reason and approximate date it became worthless |
| Section 1244 stock | Up to $50,000 ($100,000 joint) | Individuals report ordinary losses from section 1244 (small business) stock on line 10. Enter “Losses on Section 1244 (Small Business Stock)” in column (a) and the allowable loss in column (g) |
| Applicable preferred stock | Ordinary for financial institutions | Gain or loss recognized by an applicable financial institution from the sale or exchange of applicable Fannie Mae or Freddie Mac preferred stock is ordinary |
What “not included on lines 11 through 16” means
Part II has dedicated lines: 11 for a loss from line 7, 12 for gain from line 7 or the amount from line 8, 13 for gain from line 31, 14 for the net casualty or theft result from Form 4684, 15 for ordinary installment gain and 16 for ordinary like-kind exchange gain or loss. Line 10 is everything else that is ordinary.
Section 1244 stock limit
The most that may be treated as an ordinary loss on Form 4797 is $50,000 ($100,000 if married filing jointly). Special rules may limit it if you received the stock for property with a basis above fair market value, or your stock basis increased through contributions to capital. Losses above the maximum, and all gains, go on Schedule D. Attach a computation, and keep records separating 1244 stock from other stock in the same corporation.
Traders
Securities or commodities held in connection with a trading business under a mark-to-market election are reported here, including gains and losses from marking positions to market at year end. Attach a statement in the same format as line 10 and separately identify what you held and marked at the end of the year.
Worked example
Lena, single, sells section 1244 stock in 2025 at a $70,000 loss and the stock qualifies. She enters “Losses on Section 1244 (Small Business Stock)” in column (a) and $50,000 in column (g) of line 10. The other $20,000 is reported on Schedule D. Had she filed jointly, the line 10 maximum would be $100,000 and all $70,000 could go there. Names and figures are made up, and the special rules above could reduce the allowable loss.
More line pages in this set
Related lines: Form 4797 Line 6, Form 4797 Line 8.
Sources
- Instructions for Form 4797 (2025): the line-by-line instructions on this page. Page last reviewed or updated April 30, 2026. Read November 2, 2026.
- Form 4797, Sales of Business Property (2025): the printed line wording and arithmetic on the form. Read November 2, 2026.
Tax year 2025 form and instructions. Line labels were read from the IRS PDF posted on the date read; line numbers, dollar limits and cutoff years change between editions, so check them against the form for your tax year. Line 10 has several special cases; read the full instruction for your situation before relying on this summary. Names in worked examples are made up.
Frequently asked questions
What is Form 4797 line 10?
The catch-all line in Part II for ordinary gains and losses that are not included on lines 11 through 16, including gains and losses from property held 1 year or less.
Where do section 1244 losses go?
Individuals report them on line 10, up to $50,000 ($100,000 if married filing jointly); amounts above that, and all gains, go on Schedule D.
What do I enter in column (a) for a trader?
“Trader—see attached,” with the totals from your attached statement in columns (d), (f) and (g).
Can I deduct an abandonment loss here?
Yes. The instructions say to deduct the loss from a qualifying abandonment of business or investment property on line 10 and to see Abandonments in Pub. 544.
Where do small business investment company stock losses go?
Ordinary losses from SBIC stock under section 1242 are reported on line 10, with an attached statement naming the company and, if applicable, the reason and approximate date the stock became worthless.
Not tax advice
This page summarizes IRS instructions, mostly written for the people who prepare the form, and is not tax, legal or financial advice. A CPA or an enrolled agent can confirm what a line means for your return. Everything runs in your browser; nothing you enter is sent anywhere.