Repossession of Personal Property from a Deferred Payment Sale Calculator
If you have repossessed personal property from a deferred payment sale, you can use this calculator to determine the gain or loss.
How the repossession of personal property from a deferred payment sale calculator works
For personal property sold on a deferred-payment basis, repossession produces a gain or loss equal to the property’s fair market value minus your basis in the buyer’s obligation, less the costs of taking the property back.
Worked example: with value of repossessed property (fmv) of $18,000, unpaid balance of the obligation of $22,000 and gross profit percentage on the sale of 40.00%, the repossession of personal property from a deferred payment sale calculator shows gain on repossession of $4,000.
- Basis in the obligation
- $13,200
- Repossessed FMV
- $18,000
- Repossession costs
- $800
- Taxable gain
- $4,000
The formula
Basis in obligation = unpaid balance × (1 − gross profit %). Gain/loss = repossessed FMV − basis in obligation − repossession costs.
Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.
Questions about the repossession of personal property from a deferred payment sale calculator
How does a deferred-payment sale differ from installment?
In reporting timing and method, but the repossession math is similar: gain or loss is the repossessed property’s value minus your remaining basis in the obligation.
Can I have a loss on repossession?
Yes — if the property’s value plus what you have collected is less than your basis in the obligation and costs, you realise a loss, which the calculator shows.
Where do these rules come from?
IRS Publication 537 on installment sales. The calculator applies the standard approach, but repossession taxation is complex — verify with a tax advisor.
Is the Repossession of Personal Property from a Deferred Payment Sale Calculator free to use?
Yes. Every calculator on FinCalculators is completely free, with no sign-up, login or paywall. You can run as many scenarios as you like.