If i sold a car on ebay would i need to charge tax? would i get in trouble if i didnt if i do have to charge tax how much do i need to charge? and who do i pay the taxes to? I know nothing about things like this.
2007-08-13 04:32:15 · 6 answers · asked by ImWearingAHelmet 3 in Business & Finance ➔ Taxes ➔ United States
I hope you meant $10,000.......
Sales Taxes: As cars are titled property, the new owner of the car will have to pay his or her sales when they register the car. Unless you are a dealer and you sold to someone in your home state, you do not have to collect sales taxes.
Income Taxes: If you sold the car at a loss from what you originally paid for it, there are no tax consequences. If it was a personal vehicle, the loss isn't deductible either. If you sold it at a gain, then the gain would be reported on Schedule D.
2007-08-13 04:54:02 · answer #1 · answered by Wayne Z 7 · 0⤊ 0⤋
The person buying the car has to pay sales tax on the purchase. You should though let your insurance company you have sold the car, also turn in the plates to your states local Motor Vehicle Registry office if you weren't going to re-use the plates. That way you won't pay insurance or excise taxes on a car you don't have any more. If the car was personal use, there is no tax problem with it, but if you used it for businesses purposes then you need to figure out what your adjusted cost (taking into account either depreciation or mileage depreciation) on the car was, as if you used it for business purposes you were able to either take business mileage or actual expenses, and have either a business gain or a business loss, and that would have a tax effect on you.
2007-08-13 17:46:40 · answer #2 · answered by Anonymous · 0⤊ 0⤋
No, no, and hell no.
One has to sell a number of cars per year to have a sales tax liability. Number may vary by state. Usually more than 3.
One time is NO.
2007-08-13 11:41:13 · answer #3 · answered by ed 7 · 1⤊ 0⤋
You don't need to charge tax, the buyer will pay it to his/her state when he or she registers the car.
But if you made a profit on the car, you'd have to show it on your income tax. If you paid more for it than you sold it for, then you don't have to declare it or pay any income tax on the sale.
2007-08-13 13:12:30 · answer #4 · answered by Judy 7 · 1⤊ 0⤋
For $10 bucks you don't have to do anything related to taxes. Too small for anyone to worry about. The paperwork alone would cost more than that.
2007-08-13 11:43:53 · answer #5 · answered by magnolia 5 · 0⤊ 0⤋
Go to your State's DMV website and find out.
2007-08-13 11:43:43 · answer #6 · answered by ? 5 · 0⤊ 0⤋