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Form 4797 is used to report gains made from the sale or exchange of business property, including but not limited to property used to generate rental income.
Capital improvements are permanent structural changes to a property that enhance its value, increase its useful life, or allow for a new use.
A fourth property, the Plaza Hotel in New York, declared bankruptcy in 1992 after amassing debt. PolitiFact uncovered two more bankruptcies filed after 1992, totaling six.