In: Accounting
IIt Ifactors Iin Icash, Ithe Ifair Imarket Ivalue I(FMV) Iof Iany Iassets, Iexisting Iliabilities, Ias Iwell Ias Isales Iexpenses.
· It Iencompasses Iall Iforms Iof Icompensation, Iincluding Icash, Ithe IFMV Iof Iany Iproperty Ireceived, Iand Iany Iliabilities Ithat Ithe Ipurchaser Iassumes Ias Ia Iresult Iof Ithe Itransaction.
· It Ialso Ifactors Iin Iselling Iexpenses, Isuch Ias Iredemption Ifees, Iadvertising Iand Ilegal Ifees, Icommissions, Iand Iexit Icharges.
· Amount Irealized Iis Iused Ito Icalculate Irealized Itaxable Igains Iand Ilosses.
Amount Irealized Iis Ithe Iamount Ireceived Ifrom Ithe Isale Iof Ian Iasset Ior Ifinancial Iinstrument. IIt Iencompasses Iall Iforms Iof Icompensation, Iincluding Icash, Ithe IFMV Iof Iany Iproperty Ireceived, Iand Iany Iliabilities Ithat Ithe Ipurchaser Iassumes Ias Ia Iresult Iof Ithe Itransaction. I
The Iamount Irealized Idiffers Ifrom Irealized Iincome, Iwhich Iis Imoney Iyou Ireceive Ifor Igoods Ior Iservices, Iand Iis Iused Ito Icalculate Irealized Itaxable Igains Iand Ilosses. ITo Icalculate Ia Irealized Igain Ior Iloss, Itake Ithe Idifference Iof Ithe Itotal Iconsideration Igiven Iand Isubtract Ithe Icost Ibasis. IIf Ithe Idifference Iis Ipositive, Iit Iis Ia Irealized Igain. IIf Ithe Idifference Iis Inegative, Iit Iis Ia Irealized Iloss.
A Icar Iloan Itransfer Iis Ia Icumbersome Iprocess Ias Iit Inot Ionly Irequires Iyou Ito Iidentify Ia Icreditworthy Iborrower Ifor Iloan Itransfer Ibut Ialso Irequires Iyou Ito Itransfer Iyour Icar Iregistration Iand Iinsurance Iin Ithe Iname Iof Ithe Inewborrower.
Keep Ithe Ifollowing Ithings Iin Imind Iwhile Itransferring Ithe Icar Iloan Ito Ianother Iperson.
1. ICheck Ithe Icurrent Iloan Iagreement Idetails
Before Ithinking Iof Itransferring Ithe Iloan Ito Ianother Iperson, Iyou Imust Iensure Ithat Iyou Ihave Igone Ithrough Ithe Idetails Iof Iyour Iloan Idocuments. IIt Iis Imentioned Iin Ithe Iloan Idocument Iwhether Iit Iis Ipossible Ito Itransfer Iyour Iloan Ito Ianother Iperson. IHowever, Iif Iyou Iare Iunable Ito Ifind Ithis Iinformation Iin Ithe Iloan Idocument, Iyou Ican Icontact Iyour Ilend I..
2. IAnalyse Ithe Inew Icar Ibuyer's I(borrower) Icredibility
The Inew Icar Ibuyer I(borrower), Iwho Iis Igoing Ito Itake Iover Ithe Icar Iloan, Ishould Ihave Ihad Imaintained Ia Igood Icredit Ihistory.
3. ITransfer Ithe Icar Iregistration Icertificate
The Iexisting Iowner Ihas Ito Itransfer Ithe Iregistration Icertificate Iof Ithe Icar Ialong Iwith Ithe Iloan Ito Ithe Ibuyer. IThe IRTO Iwill Ilevy Icharges Ion Ithe Itransfer Iprocess. IOnce Ithe Ibackground Icheck Iis Idone Iby Ithe Ilenders Iand Iother Idocumentation Iprocesses Iare Icompleted, Ithe Inew Iown I..
4. IWhat Ishould Ithe Ibuyer Iof Ithe Iused Icar Ido?
The Iused Icar Ibuyer Ihas Ito Iapply Ifor Ia Iused Icar Iloan. You Iwill Ialso Iget Ia Imaximum Itenure Iof I5 Iyears Ito Irepay Ithe Iloan. IHowever, Ithis Idepends Ion Ithe Iage Iof Ithe Icar Itoo. I
IIt Ioccurs Iwhen Ian Iasset Iis Isold Iat Ia Ilevel Ithat Iexceeds Iits Ibook Ivalue Icost.
While Ian Iasset Imay Ibe Icarried Ion Ia Ibalance Isheet Iat Ia Ilevel Ifar Iabove Icost, Iany Igains Iwhile Ithe Iasset Iis Istill Ibeing Iheld Iare Iconsidered Iunrealized Ias Ithe Iasset Iis Ionly Ibeing Ivalued Iat Ifair Imarket Ivalue.
Realized Igains Iand Iunrealized Igains Ivary Iconsiderably. IAn Iunrealized Igain Imost Ioften Irefers Ito Ia Igain Ireported Ion Ia Icompany’s Ifinancial Istatements Iand Iwill Iappreciate Ithe Ivalue Iof Ithe Ispecified Iasset Ion Ia Icompany’s Ibooks. IUnrealized Igains Iare Itypically Inot Itaxed. IThey Iadd Ito Ian Iasset’s Ioriginally Ireported Ibook Ivalue Iat Ithe Itime Iof Ipurchase Iand Ican Ioccur Ion Iall Itypes Iof Iassets Iand Iinvestments Iheld Iby Ia Icompany.The Iassets Iare Iincluded Ion Ithe Icompany’s Ibalance Isheet; Ihowever, Ithey Imay Ibe Ireported Iwith Ior Iwithout Ithe Iunrealized Igains. IUnrealized Igains Ifor Ian Iasset Ican Ihelp Ito Idetermine Iits Iselling Iprice Isince Ithese Igains Iare Iadded Ito Ithe Iasset’s Ibook Ivaluation.