Help How to record property sale?

Discussion in 'Quicken' started by Steve, Jul 20, 2006.

  1. Steve

    Steve Guest

    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
     
    Steve, Jul 20, 2006
    #1
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  2. Steve

    R. C. White Guest

    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

    Microsoft Windows MVP

    "Steve" <> 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
     
    R. C. White, Jul 21, 2006
    #2
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  3. Steve

    Steve Guest

    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" <> wrote in message
    news:...
    > 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
    >
    > Microsoft Windows MVP
    >
    > "Steve" <> 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

    >
     
    Steve, Jul 22, 2006
    #3
  4. Steve

    Route 101© Guest

    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" <> 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" <> wrote in message
    > news:...
    >> 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
    >>
    >> Microsoft Windows MVP
    >>
    >> "Steve" <> 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

    >>

    >
    >
     
    Route 101©, Jul 23, 2006
    #4
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