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When you sell a car do you have to claim it on income tax return?
Wiki User
∙ 13y ago
With the exception of collectibles and/or antiques, cars usually lose value over time. However, if there is a gain or profit from the sale of any vehicle, the gain or profit is taxable and reported as a capital gain on Sch D of IRS form 1040. It is usually taxable on most state and local income tax forms. If the taxable income reported on the federal return is transferred to the state/local tax form, then there is no need to report it on the state/local return since it is included on the federal return.
Wiki User
∙ 13y ago
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How to return car after 3 years of purchase?
If you purchased a car, you can't return it after three years but you can sell it. People return cars if they are leased.
Do you have to claim an employer furnished car as personal income on your tax return?
Yes. Anything of value you receive from your employer, it makes no difference if it's money or in lieu of money, is taxable. Call it what you want, it is still income. Your employer should be providing the required amount of income on your oersonal use of the vehicle in your W-2.
Can you sell a car with an insurance claim outstanding?
As long as the vehicle has been inspected you can.
Can you sell your wrecked car to the salvage yard instead of fixing it under a claim?
if u have the title and its under ur name u can sell the car to any1.
Do you have to claim the sale of a vehicle as income?
Normally you never make a profit on a car you buy and sell years later. Depreation will take care of that. However if you are buying and selling cars for profit, then yes the net profit is considered earned income. Not the selling price but the net profit.
Can you sell your vehicle with an insurance claim pending?
Selling your car with insurance claim pending, will simply null and void your insurance claim. Because your damaged car can be subjected to inspection by the Assessor of the Insurance Co. for assessment of the insurance claim any time.
Can you sell your car if an individual has a lean on your car?
Yes you can. It's up you if you'll gonna sell it to someone else and after it was successfully sold your car, you should return the money to the other buyer of your car who has a lean on your car.
If you sold a car that's paid for do you have to claim the profit as income in the state of Oklahoma?
If you somehow managed to sell a car for more than you paid for it (technically, your "tax basis"), then the difference is taxable income. If you are in the car sales business, it is ordinary income. Otherwise, it is a capital gain. It makes no difference if the car was paid for or not. Your basis is the amount you originally agreed to pay for it (not including any interest on loans) plus any capital improvements minus any adjustments required by law (depreciation claimed if you used the car for business purposes or the amount of a casualty deduction, for example).
Is it legal to sell a car to someone who has NO income?
If you are the owner of a car, you can legally sell it to anyone you choose. If you sell it to someone who cannot actually afford to pay for it, you may never get paid. But it is up to you, whether you wish to trust your buyer or not.
You bought a car for your fiance and now the wedding is off you need to get rid of the car Can you return the car to the dealer And how will this affect your credit?
In general, you cannot return a car to a dealer. You can sell it back to them, though. Selling it won't affect your credit.
Does a classic car count as income if you sell it for the price that you put into it?
No, if you make no profit on the vehicle then you had no capital gains.
What happens if you return a car?
You cannot return a car you have purchased. If you do they will just put it in storage, charge you for everyday it is there, and then the lender will repossess the car for non payment of the loan. They will sell the car and you will then have to pay for the storage fees, repossession fees, and the difference in what the balance on the loan was and what they sold the car for. Bottom line is that you bought the car, you own the car, and you are stuck with the car. Don't like it then sell it. There is no cooling off period on the purchase of a vehicle.
