Installment Sales Basis Calculator

Formula

The formula to calculate the Installment Sales Basis (ISB) is:

\[ ISB = AB + SE + RD \]

Where:

$ AB $ is the adjusted basis ($).
$ SE $ is the selling expenses ($).
$ RD $ is the recaptured depreciation ($).

Example

Let's say the adjusted basis ($ AB $) is $50,000, the selling expenses ($ SE $) are $5,000, and the recaptured depreciation ($ RD $) is $2,000. Using the formula:

\[ ISB = 50000 + 5000 + 2000 \]

We get:

\[ ISB = 57000 \]

So, the Installment Sales Basis ($ ISB $) is $57,000.

Additional Example

Suppose the adjusted basis ($ AB $) is $30,000, the selling expenses ($ SE $) are $3,000, and the recaptured depreciation ($ RD $) is $1,000. Using the formula:

\[ ISB = 30000 + 3000 + 1000 \]

We get:

\[ ISB = 34000 \]

So, the Installment Sales Basis ($ ISB $) is $34,000.

What is Installment Sales Basis?

Installment Sales Basis refers to the total amount used to determine the gain or loss on the sale of an asset when payments are received over time. It includes the adjusted basis, selling expenses, and recaptured depreciation.