Business Calculators

Repossession of Personal Property from an Installment Payment Sale Calculator

If you have repossessed personal property with installment payments, you can use this calculator to determine the gain or loss.

Inputs

Value of repossessed property (FMV)

Unpaid balance of the obligation

Gross profit percentage on the sale

Repossession costs

Estimates only. Adjust any value to recalculate instantly.

Results

Gain on repossession $4,000 FMV $18,000 vs basis in the obligation

Basis in the obligation $13,200 unpaid × (1 − gross profit %)

Repossessed FMV $18,000

Repossession costs $800

Taxable gain $4,000

Repossession outcome

Basis recovered $13k
Gain $4.0k

When you repossess personal property sold on an installment basis, your gain or loss is the property's fair market value minus your basis in the buyer's obligation (the unpaid balance reduced by the unrealized gross profit), less repossession costs.

How the repossession of personal property from an installment payment sale calculator works

When you repossess personal property sold on installment, your gain or loss equals the property’s fair market value minus your basis in the buyer’s obligation — the unpaid balance reduced by the gross profit you had not yet reported — less repossession costs.

Worked example

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 an installment 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.

Frequently asked

Questions about the repossession of personal property from an installment payment sale calculator

How is gain on repossessed personal property figured?

It is the fair market value of the property you take back minus your basis in the buyer’s installment obligation, less the costs of repossessing it.

What is the basis in the obligation?

The unpaid balance reduced by the unrealized gross profit — the portion of profit you had not yet reported. It represents your remaining investment in the note.

Is this tax advice?

No — it is an educational estimate based on IRS Publication 537. Installment-sale and repossession rules are intricate; confirm your specifics with a tax professional.

Is the Repossession of Personal Property from an Installment 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.

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