Enter the adjusted basis ($), the selling expenses ($), and the recaptured depreciation ($) into the Installment Sales Basis Calculator. The calculator will evaluate and display the Installment Sales Basis. 

Installment Sales Basis Formula

The following formula is used to calculate the Installment Sales Basis. 

ISB = AB + SE + RD
  • Where ISB is the Installment Sales Basis ($)
  • AB is the adjusted basis ($) 
  • SE is the selling expenses ($) 
  • RD is the recaptured depreciation ($) 

How to Calculate Installment Sales Basis?

The following example problems outline how to calculate Installment Sales Basis.

Example Problem #1

  1. First, determine the adjusted basis ($).
    1. The adjusted basis ($) is given as 60.
  2. Next, determine the selling expenses ($).
    1. The selling expenses ($) is calculated as: 70.
  3. Next, determine the recaptured depreciation ($).
    1. The recaptured depreciation ($) is found to be: 80.
  4. Finally, calculate the Installment Sales Basis using the formula above: 

ISB = AB + SE + RD

Inserting the values from above yields: 

ISB = 60 + 70 + 80 = 210.00 ($)

Example Problem #2

The variables needed for this problem are provided below:

adjusted basis ($) = 90

selling expenses ($) = 100

recaptured depreciation ($) = 110

This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer. 

ISB = AB + SE + RD = ($)