FE Power Forums
FE Power Forums => Non-FE Discussion Forum => Topic started by: afret on April 05, 2020, 02:03:26 PM
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Wondering what's the tax consequence of selling a car? Is the difference you paid for it and what you sell it for considered reportable income? If so, with these old cars, would the IRS consider all these upgrades done over the years as routine maintenance and can't be used to decrease the gain? It seems in most cases you can't ever get close to getting back the crazy amount that was put into these cars. Thanks.
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Good to hear you're still alive Afret. It's been pretty quiet down your way lately. As for your question, can't say what happens in the US but up here there is no ramification for the seller. You get whatever you can get including upgrades.
The buyer has to pay sales tax on the purchase price though. The crime of that is... tax is paid every time a vehicle is sold. Buy a new car, pay the tax on the full price. Someone buys it off you 2 years later and is taxed again. If the car is sold 10 times in it's lifetime it's taxed 10 times over.
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Only if you are a licensed dealer.
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Good to hear you're still alive Afret. It's been pretty quiet down your way lately. As for your question, can't say what happens in the US but up here there is no ramification for the seller. You get whatever you can get including upgrades.
The buyer has to pay sales tax on the purchase price though. The crime of that is... tax is paid every time a vehicle is sold. Buy a new car, pay the tax on the full price. Someone buys it off you 2 years later and is taxed again. If the car is sold 10 times in it's lifetime it's taxed 10 times over.
Hi Dale! Hope the virus stays clear of your area. Everyone here is told to stay at home.
Sounds like the tax man in Canada is just as greedy as here.
Only if you are a licensed dealer.
Just did a search and looks like it has to go on a schedule D. :( Kind of makes it too much of a pain to sell.