Accountant Forums


Reply
Thread Tools

Help How to record property sale?

 
 
Steve
Guest
Posts: n/a
Thanked:
 
      07-20-2006, 03:56 AM
I just sold a piece of land I had for many years. I entered the deposit to
my savings account with the sale price and subtracted the settlement fees
and taxes etc.. to make the net deposit.

How do I use the tax planner or what should I do next to record my purchase
price, improvements cost, etc... to input the LT capital gains in the tax
planner? Its not clear to me how to properly record this type of
information in Q2006.

Thanks, Steve


 
Reply With Quote
 
 
 
 
R. C. White
Guest
Posts: n/a
Thanked:
 
      07-21-2006, 04:37 AM
Hi, Steve.

You need to do two things:

1. Determine your net selling price. That would be the sale price, less
expenses of making the sale (such as fees for recording documents at the
courthouse, appraisal fees, attorney fees, etc.) if you had to pay any of
those. It doesn't matter if those amounts were deducted from the sale
proceeds or if you paid them separately. Amounts that you would have had to
pay even if you kept the property (such as real estate taxes to the date of
sale) are not selling expenses; these would be deducted on your return in
the same way that you deducted them in prior years. If you received a
settlement statement (from the attorney, lender, broker or other party),
that should provide a road map to help you determine the net selling price.

2. Determine your "adjusted basis" in the property. This is usually the
price you paid - no matter how long ago - plus the cost of any improvements
you made over the years. "Improvements" don't include repairs and
maintenance; those are operating expenses that might be deductible in the
years you paid them. If any part of the property was depreciable, you'll
have to deduct any depreciation "allowed or allowable" for all the years you
held the property to determine your adjusted basis. Again, if there was a
settlement statement, it would provide a good starting point.

Then just report both (1) and (2) on Schedule D of your Form 1040 and follow
the instructions to determine your capital gain (or loss).
I've not used the tax planner in so many years that my advice on that would
be sheer guesswork, so I won't comment on the mechanics of that.

If you need more details, you'll have to tell us more about the property and
the purchase and sale transactions. For example, if this was "property used
in a trade or business", as opposed to property held for investment or for
personal use, then you might need to report it initially on a form other
than Schedule D:.

RC
--
R. C. White, CPA
(Retired - no longer licensed to practice)
San Marcos, TX
(E-Mail Removed)
Microsoft Windows MVP

"Steve" <(E-Mail Removed)> wrote in message
news:R9Dvg.161338$k%3.66901@dukeread12...
>I just sold a piece of land I had for many years. I entered the deposit to
>my savings account with the sale price and subtracted the settlement fees
>and taxes etc.. to make the net deposit.
>
> How do I use the tax planner or what should I do next to record my
> purchase price, improvements cost, etc... to input the LT capital gains in
> the tax planner? Its not clear to me how to properly record this type of
> information in Q2006.
>
> Thanks, Steve


 
Reply With Quote
 
 
 
 
Steve
Guest
Posts: n/a
Thanked:
 
      07-22-2006, 12:33 PM
Appreciate your comments, I have done all that using an asset account, my
problem is how do I properly enter the information in Q2006 so it will feed
it to the Tax Center and show the projected (estimated) taxes remaining due?
It's the mechanics of that, that I need some guidance with.

Steve

"R. C. White" <(E-Mail Removed)> wrote in message
news:(E-Mail Removed)...
> Hi, Steve.
>
> You need to do two things:
>
> 1. Determine your net selling price. That would be the sale price, less
> expenses of making the sale (such as fees for recording documents at the
> courthouse, appraisal fees, attorney fees, etc.) if you had to pay any of
> those. It doesn't matter if those amounts were deducted from the sale
> proceeds or if you paid them separately. Amounts that you would have had
> to pay even if you kept the property (such as real estate taxes to the
> date of sale) are not selling expenses; these would be deducted on your
> return in the same way that you deducted them in prior years. If you
> received a settlement statement (from the attorney, lender, broker or
> other party), that should provide a road map to help you determine the net
> selling price.
>
> 2. Determine your "adjusted basis" in the property. This is usually the
> price you paid - no matter how long ago - plus the cost of any
> improvements you made over the years. "Improvements" don't include
> repairs and maintenance; those are operating expenses that might be
> deductible in the years you paid them. If any part of the property was
> depreciable, you'll have to deduct any depreciation "allowed or allowable"
> for all the years you held the property to determine your adjusted basis.
> Again, if there was a settlement statement, it would provide a good
> starting point.
>
> Then just report both (1) and (2) on Schedule D of your Form 1040 and
> follow the instructions to determine your capital gain (or loss).
> I've not used the tax planner in so many years that my advice on that
> would be sheer guesswork, so I won't comment on the mechanics of that.
>
> If you need more details, you'll have to tell us more about the property
> and the purchase and sale transactions. For example, if this was
> "property used in a trade or business", as opposed to property held for
> investment or for personal use, then you might need to report it initially
> on a form other than Schedule D:.
>
> RC
> --
> R. C. White, CPA
> (Retired - no longer licensed to practice)
> San Marcos, TX
> (E-Mail Removed)
> Microsoft Windows MVP
>
> "Steve" <(E-Mail Removed)> wrote in message
> news:R9Dvg.161338$k%3.66901@dukeread12...
>>I just sold a piece of land I had for many years. I entered the deposit
>>to my savings account with the sale price and subtracted the settlement
>>fees and taxes etc.. to make the net deposit.
>>
>> How do I use the tax planner or what should I do next to record my
>> purchase price, improvements cost, etc... to input the LT capital gains
>> in the tax planner? Its not clear to me how to properly record this type
>> of information in Q2006.
>>
>> Thanks, Steve

>



 
Reply With Quote
 
Route 101
Guest
Posts: n/a
Thanked:
 
      07-23-2006, 09:50 PM
You can try editing the account's details, Tax Schedule Info, and in the
drop-down menu for Transfers Out, select the appropriate tax form. I don't
use the Quicken tax planner much except to give me a very general idea, and
even then it requires manual adjusting.
...............................
Don't worry about what people think; they don't do it very often.

**This message was scanned before sending by McAfee Antivirus.**

"Steve" <(E-Mail Removed)> wrote in message
news:gWowg.164404$k%3.6377@dukeread12...
> Appreciate your comments, I have done all that using an asset account, my
> problem is how do I properly enter the information in Q2006 so it will
> feed it to the Tax Center and show the projected (estimated) taxes
> remaining due? It's the mechanics of that, that I need some guidance with.
>
> Steve
>
> "R. C. White" <(E-Mail Removed)> wrote in message
> news:(E-Mail Removed)...
>> Hi, Steve.
>>
>> You need to do two things:
>>
>> 1. Determine your net selling price. That would be the sale price, less
>> expenses of making the sale (such as fees for recording documents at the
>> courthouse, appraisal fees, attorney fees, etc.) if you had to pay any of
>> those. It doesn't matter if those amounts were deducted from the sale
>> proceeds or if you paid them separately. Amounts that you would have had
>> to pay even if you kept the property (such as real estate taxes to the
>> date of sale) are not selling expenses; these would be deducted on your
>> return in the same way that you deducted them in prior years. If you
>> received a settlement statement (from the attorney, lender, broker or
>> other party), that should provide a road map to help you determine the
>> net selling price.
>>
>> 2. Determine your "adjusted basis" in the property. This is usually the
>> price you paid - no matter how long ago - plus the cost of any
>> improvements you made over the years. "Improvements" don't include
>> repairs and maintenance; those are operating expenses that might be
>> deductible in the years you paid them. If any part of the property was
>> depreciable, you'll have to deduct any depreciation "allowed or
>> allowable" for all the years you held the property to determine your
>> adjusted basis. Again, if there was a settlement statement, it would
>> provide a good starting point.
>>
>> Then just report both (1) and (2) on Schedule D of your Form 1040 and
>> follow the instructions to determine your capital gain (or loss).
>> I've not used the tax planner in so many years that my advice on that
>> would be sheer guesswork, so I won't comment on the mechanics of that.
>>
>> If you need more details, you'll have to tell us more about the property
>> and the purchase and sale transactions. For example, if this was
>> "property used in a trade or business", as opposed to property held for
>> investment or for personal use, then you might need to report it
>> initially on a form other than Schedule D:.
>>
>> RC
>> --
>> R. C. White, CPA
>> (Retired - no longer licensed to practice)
>> San Marcos, TX
>> (E-Mail Removed)
>> Microsoft Windows MVP
>>
>> "Steve" <(E-Mail Removed)> wrote in message
>> news:R9Dvg.161338$k%3.66901@dukeread12...
>>>I just sold a piece of land I had for many years. I entered the deposit
>>>to my savings account with the sale price and subtracted the settlement
>>>fees and taxes etc.. to make the net deposit.
>>>
>>> How do I use the tax planner or what should I do next to record my
>>> purchase price, improvements cost, etc... to input the LT capital gains
>>> in the tax planner? Its not clear to me how to properly record this
>>> type of information in Q2006.
>>>
>>> Thanks, Steve

>>

>
>



 
Reply With Quote
 
 
 
Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are On
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
PROPERTY TAX ON INVESTMENT PROPERTY allout22@hotmail.com Tax 1 03-12-2006 08:27 AM
HELP HELP HELP Need help with accountants review file onagap Quickbooks 17 01-19-2005 07:54 PM
Rental Property Deductions Before the Rental Property Ownership? MNRealEstate Tax 2 12-31-2004 03:49 PM
Which type of property ownership best-serves to protect a property from creditors? IOUERG Tax 3 05-14-2004 01:29 AM
Property Portfolio Management Software UK - software tool for the SERIOUS property Investor! silk Accounting 0 09-15-2003 01:04 PM


All times are GMT. The time now is 04:24 AM.
Posts in this forum do not constitute the advice of AccountantForums.com or its members. Financial advice should always be taken from qualified advisors before committing to a financial decision.