hi all, i've currently on/off been buying cars, doing them up and selling them for a profit ( to fund going out etc) just wondering - how many cars can i own and sell in a year before i would be classed as a business?
2007-04-08 10:03:46 · 9 answers · asked by Sammy D 2 in Cars & Transportation ➔ Buying & Selling
Mark B and Gizmo are both right -
If you are just selling on cars you have owned, the maximum you can sell in 12 months (before being classed as a trader) is six.
However, if you are intentionally buying cars to sell at a profit, you are a trader from day one.
2007-04-08 20:32:03 · answer #1 · answered by Nightworks 7 · 0⤊ 0⤋
Technically, every vehicle you sell as profit you need to pay tax on. If the IRS finds out you made a profit on even one vehicle they will tax you for it. If you sell 3 a year you get lumped in with the dealers on many issues, such as lemon law liability, etc.
2007-04-08 10:08:40 · answer #2 · answered by Harley N 3 · 0⤊ 0⤋
Technically and legally none, if you buy to sell at a profit your seen as a trader and as such are liable to all the legalities associated.
If your only doing one say every other month, unless someone reports you, nobody will show much interest. More than that you need to watch what your doing.
2007-04-08 13:21:02 · answer #3 · answered by Mark B 5 · 1⤊ 0⤋
Yeah that one guy is right, if the Irs finds out you sold even one car for a profit they will expect you to pay taxes on it.
You should get a business license just to be safe, but be aware that you will have to start paying taxes on your profits.
2007-04-08 10:21:08 · answer #4 · answered by octo75 4 · 0⤊ 0⤋
In the UK i believe it to be six cars. You would need to register as a dealer. Its not such a bad thing as you then get discount on advertising and what not. More discount on parts etc. offsets an amount of your tax against tooling and costs bad debt and you can approach companies regarding finance etc. for potential buyers.
2007-04-08 11:46:04 · answer #5 · answered by Anonymous · 1⤊ 0⤋
In KY, I believe you can sell 5 cars a year before you need ot get your dealer's license. It has been some years since I heard the figure, but it may still be good. Good luck
2007-04-08 10:08:40 · answer #6 · answered by Fordman 7 · 1⤊ 0⤋
it depends on what you are doing. if youy are just repairing and selling it, you would have to be a dealer in used cars and have the tax id to be a busines. otherwise, unless you are financing the sale with payments being received for partial payment like a vehicle loan and you are listed as a lien holder on the title, you are't required to have any records and thus the vehicles involved are never officially yours unless you put the title in your name before reselling it.
2007-04-08 10:12:19 · answer #7 · answered by de bossy one 6 · 0⤊ 1⤋
10 in Illinois
2007-04-08 10:22:31 · answer #8 · answered by Anonymous · 0⤊ 0⤋
I'm surprised they haven't all been brought back to you for being faulty/deathtraps due to your gross incompetance with cars/engines. Us females are pretty thick in that department, aren't we love?
2007-04-08 10:09:33 · answer #9 · answered by ? 1 · 0⤊ 1⤋