My Carvana Offer

[Enderet]

I sold my Mav XLT ecoboost fwd to Carvana.

I paid MSRP 25,515(minus the recent grad discount $750). No delivery fee, nor other markups. Doc fee was something like 300.

Anyway, Carvana gave me 37k for it.

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[Old Ranchero]

I've never heard of paying Capital gains on any personal vehicle I ever sold- sounds fishy. When I lived in California and would buy fixxer uppers (mostly motorcycles) and re-sell at some point the only thing you had to account for was not selling more units than allowed # in a year. I think it was 4 vehicles per year as Private Party, then you had to register with state as a dealer. Other than that, no income taxes due on gains, ever. You actually don't even have to report the sale to the state when you transfer title. Where can I find more govt information explaining the capital gains requirement?

 

[Johnkn]

I would have to ask my tax professional how NOT to report it. I give too much to the IRS as it is and what do they do with it? Pay people to not work! F that!

Good luck with that... your tax preparer will confirm the capital gain tax status, and you can 100% bet the IRS has completely stepped up the identification and policing of the gains. I for one am not willing to falsify my Federal or state tax return and look over my shoulder every day for the rest of my life.

Good luck...

 

[Johnkn]

I've never heard of paying Capital gains on any personal vehicle I ever sold- sounds fishy. When I lived in California and would buy fixxer uppers (mostly motorcycles) and re-sell at some point the only thing you had to account for was not selling more units than allowed # in a year. I think it was 4 vehicles per year as Private Party, then you had to register with state as a dealer. Other than that, no income taxes due on gains, ever. You actually don't even have to report the sale to the state when you transfer title. Where can I find more govt information explaining the capital gains requirement?

Fishy? LOL, it’s Federal and state tax law. Capital gains.

The only exclusion I recall is for those who fall into a low income status. Some gains may be offset with losses (where applicable).

Google is your friend. I suspect that Carvana and other auto buying services even have info available addressing it.


Edit, added:

https://www.irs.gov/taxtopics/tc409

https://blog.carvana.com/2020/03/what-to-know-about-taxes-when-you-sell-a-vehicle/#:~:text=To report a capital gain that you get from profiting,for less than a year.

https://www.cargurus.com/Cars/articles/how_do_taxes_work_on_private_car_sales

Good luck


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[Dun4791]

Manufacturers are stepping up production, used car values are falling and will continue to fall now. Especially trucks and suv

 

[stoptothink]

Manufacturers are stepping up production, used car values are falling and will continue to fall now. Especially trucks and suv

What evidence do you have to state this?

 

[cavemold]

Manufacturers are stepping up production, used car values are falling and will continue to fall now. Especially trucks and suv

Source ?

 

[MakinDoForNow]

Ultimately it is the responsibility of the taxpayer to report his earnings. One can get caught not reporting income in many ways. Carvanna doesn't even have to report it as when the payee deposits the check or cashed it the bank or whomever is required to report the transaction. Then when taxes are filed next April the IRS computer will sum up the transactions and if reported income is not reasonably close the taxpayer is flagged for possible audit. Then things can go bad real quick.

 

[MLowe05]

Looking over your shoulder? For the rest of your life? Some of you have a flair for the dramatic. IRS audit statute of limitations are mostly 3 years, unless you've done something really egregious. They have 6 years if you leave off 25% of your income, for example. Capital gains taxes on a $10,000 vehicle profit is $3,500 at best. The statute of limitations to collect is 10 years. I know none of us are guaranteed tomorrow, but I plan to live longer than 3, 6, or 10 more years.

I am in no way advocating tax evasion or anything, but for amounts like we are talking about on this thread you're going to have to pay it (with a penalty) if you don't report it and get caught. They're not going to throw you in jail and you're not going to be charged with crimes.

I had a friend a few years ago get busted after not reporting north of $20,000 - it was a mistake on her part, albeit a big one. She had to pay taxes that were owed, which she did, and she does not live in fear today.

FWIW - even paying capital gains taxes, the truck is worth selling.

 

[22Maverick]

I sold my Mav XLT ecoboost fwd to Carvana.

I paid MSRP 25,515(minus the recent grad discount $750). No delivery fee, nor other markups. Doc fee was something like 300.

Anyway, Carvana gave me 37k for it.

Congrats on that. If I receive 45% more than I paid for the vehicle I would have a hard time saying no. But that would depend on the capital gains on a vehicle I’m just reading about.
Are you going to place a 23 order?

 

[MLowe05]

Short term capital gains taxes for our household are 22%. On our sale, that equates to around $2200.

It is still a sizable profit.

 

[cavemold]

My offer was 31,977 I could easily get 35k

 

[cavemold]

Short term capital gains taxes for our household are 22%. On our sale, that equates to around $2200.

It is still a sizable profit.

Very true

 

[Bobinmi]

Couple weeks ago offer...didn't sell of course!

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