ShawnE Posted April 16, 2011 Report Share Posted April 16, 2011 Could my client end up with a loss?? There are the facts as on the worksheet: 1 total payments received = 26875.35 2 Gain reported as income = 20512.60 3 subtract and you get gain on repossession = 6362.75 4 Gross profit on original sale = 14900.00 5 cost of repossesing = 1803 6 add line 2 & 5 = 22315.60 7 subtract line 6 from line 4 = (7415.60) 8 enter lesser of line 3 or 7. This is taxable gain = (7415.60) a loss???? or am I reading the math on line 8 backwards? :wall: Quote Link to comment Share on other sites More sharing options...
ShawnE Posted April 16, 2011 Author Report Share Posted April 16, 2011 btw - property is land report the gain/loss on sch D? I did the basis worksheet too. Done this before but never with a negative. Quote Link to comment Share on other sites More sharing options...
ShawnE Posted April 16, 2011 Author Report Share Posted April 16, 2011 Figured it out - I think. The prob lies in the fact that the land was 50% owned. I think the prior preparer put all of the payment on the form then hit it with the profit percentage. So the amounts were over reported. gads!! now what gang!!! Quote Link to comment Share on other sites More sharing options...
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