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Posted by Route 101© on July 23, 2006, 5:50 pm
Please log in for more thread options 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.
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> 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
>
>> 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
>> rc@grandecom.net
>> Microsoft Windows MVP
>>
>>>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
>>
>
>
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