Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

I sold a large asset in 2016 that we had depreciated.

I sold a large...

I sold a large asset in 2016 that we had depreciated. Original cost basis: $95,000 (purchase price) Depreciated basis: approx $12,000 Price I sold it for: $78,000. So I have a depreciation recapture of approx. $66,000. BUT, I had to pay off a loan of about $98,000 after the sale, so I realized a loss of about $20,000. Question: Is that $20,000 consider an expense of the sale? It seems that I should be able to include that loss somewhere.

Accountant's Assistant: The Accountant will know how to help. Is there anything else the Accountant should be aware of?

The original loan on the item (an RV used in business) was for $105,000 because it included some money to do improvements. We used $95K as the original basis. But that is why the payoff is greater than the original basis

Show More
Show Less
Ask Your Own Tax Question
Answered in 13 minutes by:
4/18/2017
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,325
Experience: Taxes, Immigration, Labor Relations
Verified

When you took out a loan - it was not included into your income - correct?
Thus when you pay it back - you may not deduct that payment.

Ask Your Own Tax Question

In this case you will include into your taxable income $66,000.
You are correct - that is because of depreciation recapture rules.

On the other hand - you already deducted depreciation - so we may not deduct it again.
Sorry if you expected differently.

Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,325
Experience: Taxes, Immigration, Labor Relations
Verified
Lev and 87 other Tax Specialists are ready to help you
Ask your own question now
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,325
33,325 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
What is tax liability, selling residential real estate for
Second opinion] What is tax liability, selling residential real estate for 720,000, sales proceeds 43,000 (after title, escrow, commissions and $244,000 loan pay-off. Estimated recapture depreciation … read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,325 satisfied customers
What are my cost basis: Rental Property sold for $105,000
What are my cost basis:Rental Property sold for $105,000 Purchase Price $64,500 Settlement Statement: Mortgage payoff $61,000 Closing Cost $4,502.18… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,325 satisfied customers
I purchased a rental for $56,000 in 1995. I made $34,000
I purchased a rental for $56,000 in 1995. I made $34,000 worth of improvements in 2007. I sold the property for $66,000. Can I claim the $24,000 loss? … read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,325 satisfied customers
I am a partner in a business that is in the process of being
Hi, I am a partner in a business that is in the process of being sold, I hold 4% of the shares which will amount to $40,000 what is the best way to handle this to avoid paying taxes on it.… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,328 satisfied customers
this is a new question. if i bought a rental house on 2010
this is a new question. if i bought a rental house on 2010 for 95k, sell it on 2013 for 150k and they deduct 60k to payoff the mortgage and 10k for expenses and gave me a check for 80k how this will b… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,325 satisfied customers
We sold a rental property last year. My husband is doing the
We sold a rental property last year. My husband is doing the taxes (turbo tax) it is saying we owe $20,000 prior depreciation? We are freaking out. What does this mean? We about broke even on the sale… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
We bought a restaurant in 2011 for assets amounting to $66,000.
We bought a restaurant in 2011 for assets amounting to $66,000. We sold the business on 12/31/11 (after a substantial operating loss) for a note amounting to $100,000 which was immediately deemed unco… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
This is a pretty complex tax question 1. I sold a rental
This is a pretty complex tax question 1. I sold a rental property and after paying off the mortgage my profit was $32,000. When doing my income taxes would that amount be added to my income or would i… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,325 satisfied customers
Received a 1099-A for foreclosure on rental property.
I have received a 1099-A for a foreclosure on a rental property. It was originally a second home for my disabled, adult daughter. Unfortunately, she had to be moved to an assisted living situation, so… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,325 satisfied customers
Did a 1031 exchange in 2005 with a gain. sold the property
Did a 1031 exchange in 2005 with a gain did file a 8824 reporting the gain. sold the property in 2011 at a loss. ( Did purchase a new property in 2011, but not as part of the 1031.) Is a 8824 required… read more
fastfile
fastfile
Tax Advisor
Master's Degree
550 satisfied customers
I bought a home in 2008 received the $7500 tax credit. I paid
I bought a home in 2008 received the $7500 tax credit. I paid $500 this past year with the 2010 tax return. I want to sell my house now. I need to know if the realtor fees are included as part of my f… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,325 satisfied customers
I want to purchase a class A motor home for personal recreational
I want to purchase a class A motor home for personal recreational purposes and make it available for rent through a local RV rental service. Several questions: What is the criteria to qualify the rent… read more
Gerri A Harrison CFP EA
Gerri A Harrison CFP EA
Financial advisor/Tax preparer
Bachelor's Degree
86 satisfied customers
Capital Gain tax, I inherited a condo by right of suviorship.
Capital Gain tax, I inherited a condo by right of suviorship. It was worth 125000.00 at that time, I spend 6K on improvements, paid taxes on it, paid the monthly maintenance on it, and the assesments.… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
I got an accepted offer on one of our houses in January 2008.
I got an accepted offer on one of our houses in January 2008. The buyers didnt have a down payment that I was asking for which was $12,000. They asked if we would accept their down payment in installm… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
I purchased a business which had a loan of $30,000 I put up
I purchased a business which had a loan of $30,000 I put up $45,000 in equipment as collateral I forfeited on the loan and lost the equipment. Would I have a loss of $15,000, $30,000 or $45,000?"… read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 satisfied customers
I live in NY, and I baught a rental property in 1998 for ...
I live in NY, and I baught a rental property in 1998 for 78,000 and refinance in Dec of 2006. It apprasised at $210,000. I took a lot of equity to pay off debt and repair my primary residence. I now h… read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 satisfied customers
I have a rental I moved into August of 2005 due to a ...
I have a rental I moved into August of 2005 due to a marital seperation. It had been a rental since july 1991 and was depreciated on a 27.5 year schedule with a cost basis of $65,000.00. I will be sel… read more
Wendy Reed
Wendy Reed
Master Tax Advisor Enrolled Agent
Master's Degree
60 satisfied customers
ROTH IRA contribution/Effect of house sale on 95K income lim
BACKGROUND: I have made a $5000 (I am over 50) contribution to my ROTH IRA for 2006. My earned income will be under $95,000 (squeaking by and including some ROTH rollovers). I have a second home-renta… read more
Jon Andrews
Jon Andrews
CPA
2,926 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x