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How to show proceeds from a real estate transaction (sale) as Income

RMW
RMW Member ✭✭
I recently sold some piece of real estate. The property was previously set up as an asset. So I was able to zero out the asset by transferring the net proceeds from the sale to my checking account. So far so good. It shows up in my account balance report and in Net Worth. But since it was a Transfer, it is not reported as Income which it clearly is. So my NetWorth report correctly reflects the transaction but my Income/Expense report does not.
Is there a way to do justice to both types of reports? Thanks for any suggestion.

Best Answers

Answers

  • RMW
    RMW Member ✭✭
    That seems to work. Thanks. What tax line item would I assign for the gain?
    Schedule D only works for securities and Investment accounts.
  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    Perhaps for other readers, in that situation you would want to change the value of the asset (real estate) being sold up from cost basis to fair market value.  That change in asset value transaction is where the "Gail/Loss from Asset Sale" would be applies as an income category.  The transfer for the full value would then be, as noted, a straightforward transfer of value from one asset to another.  

    I would likely choose the "Schedule D LT Gain" tax line as the closest applicable.  Depending on circumstances (business, partnership, etc.) other tax lines might also apply.
  • RMW
    RMW Member ✭✭
    Unfortunately, I can't use Schedule D LT Gain. First of all, I don't really know what the actual realized gain is at this point. I will know next year when I file my tax return. Under the Investing/Capital Gains report, Quicken only uses securities held in an investment accounts. Real Estate Assets are not included. To, at least, show the Income (Proceeds from the sale) on the Tax Schedule Report, I just picked 1099-Miscl Income. It seems to me that Quicken is not really designed to handle these kind of transactions easily and no Wizard is currently available either.
  • RMW
    RMW Member ✭✭
    Yes, understand. To keep it simple, I just treat the sales proceeds as gross income. Since there is a gain, I have to make quarterly estimated tax payments for the remainder of the year and in January of 2021. To keep track of that , I can use the appropriate tax category in Quicken. Hopefully, this will take care of at least 90% of the tax bill. I have never used the Quicken tax planner but will give it another look. Appreciate all the comments. Thanks.
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