serious offer

[greatone99]

dealer offered 75000 cash for my 19 with 5100 miles .really considering I paid 6800 2 years ago. I believe since I would make 25000 I would be paying a capital gains tax of 15 percent ,is that true?

 

[2slo4u]

If you paid 68000 and sold it for 75000, how do you get a profit of 25000? After TTL, seems like you’d make a couple of grand at most, unless the 68000 was out the door

 

[Russ103]

dealer offered 75000 cash for my 19 with 5100 miles .really considering I paid 6800 2 years ago. I believe since I would make 25000 I would be paying a capital gains tax of 15 percent ,is that true?

What part of the country are you in? Curious because I too have a 19 albeit with a whopping 12k miles on that I paid $68k for almost 2 years ago.

 

[melvimbe]

dealer offered 75000 cash for my 19 with 5100 miles .really considering I paid 6800 2 years ago. I believe since I would make 25000 I would be paying a capital gains tax of 15 percent ,is that true?

I assume you mean you bought it for 68,000 and made a profit of 2,500? Doing a little bit of research on the matter it does seem like you would owe 15% capital gain tax. However, I don't imagine this would be on the IRS radar, since it's rare for vehicles to gain value like this. It would be difficult to piece together that there actually was a gain here. Personally, I don't think I would report it. It's not like the Federal government is going to adjust it's spending based on tax revenue received anyway.

 

[dixonk]

Why the hell would you report that? You know they will just spend it on transgender bathroom studies in Pakistan or some other stupid shit.

 

[krww06]

Unless your Raptor is owned by company (e.g. S Corp, L.L.C., etc.) I can't imagine even reporting that. Besides, I doubt the sale of a personal automobile is even eligible for being subject to a capital gains tax. More than likely it'd be taxed at your marginal income tax rate, if reported. I'm no CPA, but that's my $0.02.

 

[lawdog]

Unless your Raptor is owned by company (e.g. S Corp, L.L.C., etc.) I can't imagine even reporting that. Besides, I doubt the sale of a personal automobile is even eligible for being subject to a capital gains tax. More than likely it'd be taxed at your marginal income tax rate, if reported. I'm no CPA, but that's my $0.02.

It's not subject to capital gains, unless it was somehow (pretty much impossibly) scheduled as a "capital asset"...tax only applies to “capital assets” such as stocks, bonds, jewelry, coin collections, and real estate property. A vehicle actually used is personal property.

 

[Winchester30]

I think Uncle Joe would like you to pay capital gains on your $25,000 profit.

 

[realjones88]

To clear things up a truck is an asset and if you sell it for more than you paid for it yes you technically owe capital gains tax on it (long term rate if held for more than on year). Would I report this? No not really, not anymore than people "forget" to report sales tax on items they buy online form places that don't charge it. It's not reported to the IRS and I doubt they'll be coming after you for it. I pay enough taxes already anyway.

If you bought the car with the intent of it appreciating (like those that bought a Ford GT and parked it for three years) and sold it for profit, that's a collectible and so taxable up to 28%.

Straight from Carvana, tell you that yes it is a cap gain if you sell for profit:

What to know about taxes when you sell a vehicle, updated for 2023

Selling a car can be a fairly complicated and involved process. Read on to learn more about taxes when you sell a vehicle (updated for 2023).

www.carvana.com

 

[df4801]

Unless your Raptor is owned by company (e.g. S Corp, L.L.C., etc.) I can't imagine even reporting that. Besides, I doubt the sale of a personal automobile is even eligible for being subject to a capital gains tax. More than likely it'd be taxed at your marginal income tax rate, if reported. I'm no CPA, but that's my $0.02.

Dont give up your day job,

Any gain or profit is most certainly subject to taxation. Whether you choose to report is another question

But you better not be a liberal if you do not report! Have to pay your fair share!!