Tax ramifications of selling a car

mopar440

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I assume you have to claim something on your taxes when you sell a car for a larger amount? Assuming cash is not an option

Do you just deduct the reciepts? Do you have to claim it? I've read that banks report anything over 10000. Any tips? TIA
 
Selling your classic car without selling out to the IRS | ClassicCars.com Journal

Note: "the amount of taxable profit is based not simply on the difference in the money you paid for the car and the money you received when you sold it. You can subtract any selling expenses and any restoration costs (provided, of course, you have kept those good, detailed records)."

While that statement in the above link matches my understanding of the law, again, this is not tax or legal advice. If you are worried and don't know where to start, then you might consider hiring a competent accountant.
 
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Interesting. Now if I could stop buying and start selling...:rolleyes:
 
I assume you have to claim something on your taxes when you sell a car for a larger amount? Assuming cash is not an option

Do you just deduct the receipts? Do you have to claim it? I've read that banks report anything over 10000. Any tips? TIA

I thought that banks only reported cash transactions of $10k & more to comply with Federal regulations put in place to fight money laundering.

I also thought the Capitol Gains threshold amount was pretty high and also depended on your income level.
 
You are obviously not selling a C body to have to worry about capital gains, lol.

FWIW, I’ve only ever paid based on my current tax bracket. The net was always considered part of income.
 
I thought that banks only reported cash transactions of $10k & more to comply with Federal regulations put in place to fight money laundering.

I also thought the Capitol Gains threshold amount was pretty high and also depended on your income level.
As far as I see, income doesn't matter, I kept records, but my car was mostly labor
 
You are obviously not selling a C body to have to worry about capital gains, lol.

FWIW, I’ve only ever paid based on my current tax bracket. The net was always considered part of income.
As far as I'm seeing, the profit is taxes alone at 28 percent
 
Since it's capital gains, is it like property, were I can roll it into another car "investment"?
 
This is insane if your government expects you to pay on a personal vehicle.

I can understand if the seller is a dealer then it's expected profit/income but personal vehicle? no way.

Having to get an accountant involved is just insult to injury here imho.

Hopefully they won't charge tax on the Mecum or Barrett Jackson auction values
 
This is insane if your government expects you to pay on a personal vehicle.

I can understand if the seller is a dealer then it's expected profit/income but personal vehicle? no way.

Having to get an accountant involved is just insult to injury here imho.

Hopefully they won't charge tax on the Mecum or Barrett Jackson auction values
Tax is based off profit, however, I can't claim my labor, and THAT sucks.
 
im a cpa. you didnt pay tax on your own labor therefore it adds nothing to the cost of the car
 
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