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2007-07-28 13:45:23 · 2 answers · asked by Anonymous in Business & Finance Taxes United States

As a response to Judy, what would constitute a profit?

E.g., buyer originally purchased car for $5000, sells a year later for $4000 (car just sat in garage during that period). Would there be zero profit, or $4000 income?

2007-07-28 14:20:44 · update #1

2 answers

The seller (private party) does not pay taxes. The buyer pays state sales tax on purchase price during the registration of title.
point 2. If you (private party) buy a car for 5000.00 and sell it a year later for 4000.00, there is no income, no profit.
My opinion, and belief.

2007-07-28 16:59:57 · answer #1 · answered by pedro 6 · 1 0

The buyer would pay sales tax when they register the car.

If the seller sold it for a profit, then the seller would have to pay income taxes.

2007-07-28 21:05:10 · answer #2 · answered by Judy 7 · 1 0

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