Business Calculators

Repossession of Real Property Calculator

Real estate has a special repossession rule: your taxable gain is capped. This calculator applies the IRS limit to find the gain on repossession.

Inputs

Payments received before repossession

Gain already reported on those payments

Total gain on the original sale

Repossession costs

Estimates only. Change any value to recalculate instantly.

Taxable gain on repossession $36,000 the lesser of the cash rule and the gain limit

Cash received − gain reported $36,000

Gain limit $121,000 total gain − reported − costs

Taxable gain (lesser of) $36,000

Repossession costs $5,000

How the gain is capped

Taxable now $36k
Remaining (in new basis) $85k

For repossessed real property, the IRS caps the taxable gain at the lesser of (1) the cash received before repossession minus the gain already reported, or (2) the original gain minus the gain already reported minus your repossession costs. The rest carries into the basis of the repossessed property.

How this calculator works

This calculator runs entirely in your browser — nothing you enter is sent anywhere, and there is no sign-up. Change any input and the result, breakdown, and schedule update instantly.

Rate and cost fields are pre-filled with current benchmarks (Federal Reserve / Freddie Mac via FRED (St. Louis Fed)), so your first result is already realistic — replace them with your own quote to see your numbers. To weigh one option against another, use the loan comparison calculator.

Common questions

Is this calculator free, and do I need to sign up?

Yes and no — it is completely free and asks for no account or personal details. Every calculation happens in your browser, so nothing you type is stored or sent to us.

How accurate are the results?

The math is exact for the inputs you give it, but the defaults are national benchmarks — your real rate, fees, taxes, and insurance will differ. Treat the result as a close estimate to refine with a real quote.