I sold it for $3500, but kelly bluebook said it was worth $6400. It was paid off. Do I report this as "other income" on line 21? Report it in a schedule d? Is it taxable at all since I sold it for less than it was worth? How does this work?
2007-01-21 02:17:40 · 6 answers · asked by Eric D 2 in Business & Finance ➔ Taxes ➔ United States
If you made a profit selling it (ie - paying $1000 for it and selling it for $3500, you then earned an income of $2500) Profit = Income, and only income is taxable. Its rare that the sale of a car, you purchased, will result in a profit, considering how car depreciate in value.
2007-01-21 02:23:02 · answer #1 · answered by ButtUglyJeff 2 · 1⤊ 2⤋
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2016-08-30 00:57:34 · answer #2 · answered by Valerie 3 · 0⤊ 0⤋
It has no effect on your income. It is neither a gain nor a loss unless you purchased it for your business and depreciated it over the life of the car, or you had acquired the car as an investment with the expectation of it gaining in value.
2007-01-21 02:25:30 · answer #3 · answered by DavidNH 6 · 1⤊ 0⤋
Ive never reported the sale of any car to the IRS, not in 20 years.
2007-01-21 02:25:27 · answer #4 · answered by ♥monamarie♥ 5 · 1⤊ 0⤋
Assuming this was a personal vehicle and not used for business, you don't report it as anything.
It's after-tax money that bought it, and after-after-tax money you got.
Schedule D and capital gains are for investments. I am also assuming this wasn't an investment antique.
Losses on personal use items are NEVER deductible.
Besides, how do you know it was a loss? A book 'says' this model is worth 'X'? It didn't say YOURS was worth 'X'. Yours was worth what you sold it for. That is the market for that specific item.
2007-01-21 02:24:52 · answer #5 · answered by WealthBuilder 4 · 3⤊ 1⤋
You don't report it. It's not income.
2007-01-21 10:27:26 · answer #6 · answered by Judy 7 · 1⤊ 0⤋