What is the journal entry for sale of a fixed asset, including payoff of a mortgage loan and net gain on the transaction?

We don't know your entity type. We don't know how long you owned this property. We don't know what your prior tax years reported for depreciation. We don't know your adjusted basis.

We don't know enough to help with this tax rule question.

You really need the guidance of your CPA for what the values are going to be for which part of the activity.

You are close.  Start out with crediting the original purchase price.  Credit improvements if you capitalized these.  Credit any depreciation taken.  Debit the loan balance.  What ever is left over is gain or loss on the sale.

Whatever I understand is, Debit the loan (if any) Debit Accumulated Depreciation (up to date of Sale), Debit the Sale Proceeds received, Credit Historical Value (Original Cost), Credit Improvement Exp (if any), Credit Selling expenses if any. The difference may be Gain or Loss. If Gain then Credit and if Loss, then Debit.

I have similar scenario.  How do I net out the down payment I made from the gain.

Purchase price: $255,000

Down payment: $52,000

Sale Price: $368,365

Here's my original journal entry for trhe down payment when I made the purchase of property

Bank Cash debit - $52,000

Equity credit                         $52,000

Here's my entry for the recent sale (rounded)

Mortgage Balance debit  -   $200,000

Mortgage Interest debit -     $365

Escrow debit -                     $1000

Fees (realtor, title, etc) debit $30,000

Proceeds from sale debit     $137,000

Property Fixed Asset credit -                   $241,000

Land Fixed Asset credit -                        $14,000

Accum Depreciation credit -                    $24,000

Property Sale Income credit                    $89,365

That Income seems high as it includes my down payment in there.  What am I doing wrong?

The down payment needs to show in the asset (value of the house) for which you paid 

And what about the depreciation?

It's nice to see you here, @Taxandbooks. I appreciate you for dropping by the Community.

Depreciation is the gradual decrease in the value of a company's assets. It is the process by which assets lose value over time. You can set up an asset account to track depreciation. Here's how:

1. Make a fixed asset account for each asset (or group of assets) that will be depreciated. The account can represent a single asset or a collection of related assets.
2. Create two subaccounts for each asset account. One subaccount records the asset's purchase price, while the other records accumulated depreciation.
3. Set up an expense account to track depreciation costs.

Please read this article for more detailed steps and information: Set up asset accounts to track depreciation in QuickBooks Desktop.
 

To understand more on how depreciation works, feel free to read this article: What is depreciation and how is it calculated?

You can also record depreciation with a Journal Entry. I'd recommend consulting with your accountant first. They can suggest which accounts to use while ensuring that your books are accurate. You can also find an accountant by visiting this link: Find an accountant.

Check out the following articles that will guide you in managing your business accounts in QuickBooks Desktop:

• Create a journal entry in QuickBooks Desktop for Windows.
• Add, edit, or delete accounts in QuickBooks Desktop.
   

Helping you at any time of the day is our priority. Please don't hesitate to click the Reply button below if you have additional questions about depreciation or any QuickBooks-related concerns. I'm always looking forward to helping you. Have a nice day, Taxandbooks.
 

We sold land for $100,000. I did a general journal to enter the sale: debit to RBC to deposit $100,000 in the bank (so it would match the bank statement), $50,000 credit to Land that was in Assets (original cost of $50,000), then $50,000 credit to Gain on Dispersal of Fixed Asset that was under Equity. Problem: Nothing shows up as income, so what did I do wrong? Thank you.

Welcome to the Community space, @Ruler.

I can share ideas about matching your bank transactions in QuickBooks Online (QBO).

Before we start, may I know how many transactions are there in the $100,000 deposit in RBS bank?

When you match bank transactions in QBO, ensure that dates, descriptions, amounts, and Banks are the same. However, I would encourage you to consult with your accountant to guide you on how to enter these journal entries in QuickBooks. This way, it will keep your financial data accurate.

You can check this article for more information on how to handle bank transactions and match it with QuickBooks: Match online bank transactions in QuickBooks Online.

Also, I'd recommend reconciling your accounts every month. This helps you monitor your income and expenses and detect any possible errors accordingly. For the detailed steps, you can check out this article: Reconcile an account in QuickBooks Online.

Keep me posted in the comments if you have other concerns in QBO. I'm always ready to help. Take care, and I wish you continued success, @Ruler.

The deposit to RBC was one transaction.

I do not have an accountant. I reconcile my bank account and Quickbooks every month .  I make sure they always match.

I think I have resolved the problem. I have now put the Gain from Dispersal of Land under Other Income, and it now shows up in the Net Income on the Balance Sheet and as Net Income on the Detailed Income and Loss Statement. I think I have it right now! Thank you!

The deposit to RBC was one transaction.

I do not have an accountant.  I reconcile the bank and Quickbooks every month and make sure they always match.

I think I have resolved my problem. I have put the Gain from Dispersal of Land under Other Income, and it now shows up in the Net Income on the Balance Sheet and in the Net Income on the Detailed Income and Loss Statement.  I think it is right now!  Thank you!