I bought a car about 3 months ago off a friend for 3 thousand dollars. I recently decided to sell it, the value of the car is 10 thousand, if i get 10,000 dollars for it will i have to pay any sort of taxes on that money i make?
2006-12-28 22:13:44 · 4 answers · asked by endity 1 in Cars & Transportation ➔ Buying & Selling
No you dont have to pay taxes on a private sale, but I will tell you there are people out there not licensed to sell cars advertising dozen's of cars and they are know as curbsiders and will be arrested along with a heavy fine when found or reported by a consumer.
My main reason for answering this question is trying to contact you, I liked your answer to a question about buying from e bay auction and would like your permission to insert your answer into my website http://www.usedcartips.org/ you can contact me through the website address if permission is granted...thank You
2006-12-28 23:37:12 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If you report it as income, yes.
BUT.....I've sold at least 4 or 5 cars over the last 15 years or so, and havn't claimed dollar one on any sales and I'm still walking around a free man.
The IRS also expects you to report other income such as procedes from a garage sale or E-Bay too, but I doubt anyone but the most honest people on the planet report any of this.
2006-12-29 06:41:06 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Legally, yes. While the IRS doesn't have any means of tracking this type of sale, keep in mind that any single banking or commercial transaction that exceeds $10,000 WILL be reported to the IRS by the bank.
2006-12-29 07:30:28 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
ethically, yeah you need to....if you goto church and give offering...10% is 10% any type of imcome should be recorded
2006-12-29 10:39:52 · answer #4 · answered by Anonymous · 0⤊ 0⤋