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Repossession of Real Property Calculator

Enter the sale and the repossession

The original sale

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Up to the repossession

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Down payment and principal received, plus anything treated as a payment. Not interest.

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Total installment-sale gain you have reported in all years so far.

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Legal fees, court costs, recording, lien clearance.

More options
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Used to work out the contract price and gross profit percentage.

With an indefinite price the limit on taxable gain does not apply.

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Only the part that reduced your tax.

For real property you take back to protect your security interest in the note you received when you sold it (IRC section 1038). Special rules apply to a former main home.

Your repossession results

Taxable gain on the repossession

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Basis in the repossessed property

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Gross profit on the sale

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Gross profit percentage

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Contract price–
Gain you would have reported so far–
Bad debt recovery taxed this year–

Taxable gain worksheet

The line-by-line calculation of the gain on taking the property back, as laid out in IRS Publication 537.

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Basis worksheet

Your new basis is the untaxed part of the note plus the gain you report now and your repossession costs, which roughly restores the basis you had before the sale.

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If you later resell the property, your holding period includes the time you owned it before the original sale plus the time since the repossession, but not the time the buyer held it.

Results are estimates for educational purposes and are not financial, tax or legal advice.

Work out the taxable gain when you take back real estate you sold on an installment note, limited to the profit you expected on the sale, and your new basis in the property. Next, open the rent calculator online and enter your own details to see an estimate in seconds.