I am preparing my own returns
this year and am unsure how to list payment to us
on the sale of inherited property
. My father died in 1999, I inherited his commercial property. We sold it in 2006 through escrow and have been receiving a monthly escrow payment. In 2010 we received a large additional principal payment, and now in 2011 the property was paid in full with another large payment. Due date
on note was March 2013. The gross profit percentage in all except one year has been .42754. Am I safe in using my previous bookkeepers figures as a guide to prepare
this years return? In 2008, the gross profit percentage was .378675 for that year only, should the percentage change each year or stay the same.....I'm confused about that one thing, also because on that line for the percentage it says "for years after the year of sale, see instructions.for all the years since the sale of the property, the "Unrecaptured Section 1250 Gain has been 10,096, except for 2008 that amount is listed as 323.00. The original sale price was 200,000.00, received 50,000.00 down payment with monthly installments
of 1200.00, a lump principal pmt of 60,000.00 in 2010 and now in 2011 a payoff amount of 63,000.00.
The gross profit percentage was calculated in 2006 by dividing the gross profit of 85,508.00 by the contract price of 200,000.00 arriving at 42.7540.