Overhaulin'

do i have to include a car sale in my taxes?

if i sale my car do i have to put it as income on my taxes?

Public Comments

1. no
2. NO,but the guy that buys it pays sales tax.The only other thing is if you used it for business and were depreciateing it out and it was not totally depreciated you may owe a little back to the IRS.
3. If you are selling your personal vehicle, what you are doing is exchanging one asset (the vehicle) for another (cash). Unless you actually sold the car for more than you paid, or had depreciated the value of the car (as a business) to under the selling price, there is no taxable event. For example, a business has to depreciate the value of a vehicle over 60 months. If the vehicle cost $18,000, they have to write the value down by $300 each month, which is a tax deduction for them. After 60 months, the vehicle is on the company books with a zero value. Any money that the company gets from selling the car is then considered income. In your case you have not depreciated the car. You have no tax issue.
4. If you are a car dealer yes but no.I don't know what state you live in but here in connecticut the buyer pays the taxes at the DVM office when registering the car and if you buy from a dealer they will collect the sale tax because they register the car for you what you have to do is make a bill of sale to the buyer so he will take it to DVM when registering and he will pay the sale tax for the amount shawn on the bill and that is not an income when you bought that car you pay sale taxes on it too..
5. Only if you sold the car for more than what you paid for it. This is very rare unless you are talking antique or collectable vehicles.