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    karijo60's Avatar
    karijo60 Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Jan 17, 2013, 12:12 PM
    need JE for selling car that still has outstanding loan
    have a vehicle that I received $5200 in cash for

    Outstanding loan of $4760.83

    nbv = $1294.45

    recl assets/accum deprec to Net gain

    debited cash / credit nbv for $5200

    debited Car loan / credited cash $4760.83 (check to pay off loan)

    should have net loss of ($855) but have a gain on sale of 3905.55??
    JudyKayTee's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
    Uber Member
    		  
    #2

    Jan 17, 2013, 12:29 PM
    This sounds like homework. Is it?
    karijo60's Avatar
    karijo60 Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Jan 17, 2013, 12:31 PM
    No -- lord, been doing this for years but have just gone blank on how to net the loan balance on the car against the gain/loss...
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Jan 17, 2013, 02:03 PM
    Loss or gain is determined by what you paid for the car, not the loan balance.
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