Insane offer from Carvana.

[SiGmA_X]

A vehicle used for personal use is not subject capital gains. Do you take a loss when you lose money?

Not interested in getting into a pissing match over it, but most capital assets are subject to capital gains tax, and losses are not deductible to individuals so no you would not take a loss. Personal use vehicles are subject to taxation to the extent that a gain is realized upon sale.

Interesting according to my CPA again, you cannot right off a capital loss if you sell a personal car which is contrary to what was in your IRS guidance. All I know is I've had my CPA 20 years and he guarantees his work on my returns and if there's any additional tax penalties or interest owed he pays it as long as I give him data for use that is accurate. To each his own. good luck to everybody on whatever they decide to do

Nothing in my post said you can write off a capital loss, and the first paragraph of 409 goes on to say you cannot write off losses from personal use property.

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[MakinDoForNow]

I am in Texas and am limited to only three vehicles sales per year (would have to check it may be four) to individuals without having a registered business with a location and collect and report sales tax. So, I would find carvana or any dealer to sell to after 3/4 per year.

 

[MakinDoForNow]

Your CPA likely didn't tell you precisely what you're saying, they told you enough for you to draw your own conclusions and you remembered the part that was favorable. The audit risk around this is very low, which is probably why your CPA let you get away with it. I don't love that game, but it's not uncommon.

IRS guidance:



The gain recognized is not necessarily the difference between what you paid the dealer and what you were paid for the vehicle, but, consult your CPA for nuance of adjustable basis. This isn't my area of practice, I've never dealt with gain on personal property before, and I'm definitely not your CPA.

I am deep into reading this thread. Waiting for someone to post that they buy and sell BITCOIN WITHOUT PAYING INCOME TAX ON PROFITS

 

[RLader]

I'd say talk to a tax advisor if you are thinking about taking it. Capital gains are reportable regardless of earned income.

Capital gains are on investments not personal purchases. Unless they bought it as an investment. Mavericks are not investment quality. Especially since it was bought to drive. Unless things have changed since I was in the IRS.

 

[RLader]

Not interested in getting into a pissing match over it, but most capital assets are subject to capital gains tax, and losses are not deductible to individuals so no you would not take a loss. Personal use vehicles are subject to taxation to the extent that a gain is realized upon sale.

Nothing in my post said you can write off a capital loss, and the first paragraph of 409 goes on to say you cannot write off losses from personal use property.

Personal use property is not subject to tax. You buy stock and make money you report a gain, you lose money you may have a deductible loss.(there are more to it than that). Buy a collectable auto and then sell it you can have a gain or loss. Not a personal use auto.

 

[RLader]

Most vehicle do not appreciate. You don't read much do you https://www.mavericktruckclub.com/forum/threads/insane-offer-from-carvana.31054/post-572744

Don't do much capital gain taxes do you.
? I have a 1971 SS 396 Chevelle to sell, never been driven. Think I am going to sell it for less than sticker? That would qualify for capital gain tax. Bought as an investment not personal use.

 

[SiGmA_X]

Capital gains are on investments not personal purchases. Unless they bought it as an investment. Mavericks are not investment quality. Especially since it was bought to drive. Unless things have changed since I was in the IRS.

Personal use property is not subject to tax. You buy stock and make money you report a gain, you lose money you may have a deductible loss.(there are more to it than that). Buy a collectable auto and then sell it you can have a gain or loss. Not a personal use auto.

IRS guidance disagrees...

Capital gains apply to capital assets. It does not have to be an investment.

It simply uncommon for it to be on a vehicle.

https://www.law.cornell.edu/uscode/text/26/1221

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

Don't do much capital gain taxes do you.
? I have a 1971 SS 396 Chevelle to sell, never been driven. Think I am going to sell it for less than sticker? That would qualify for capital gain tax. Bought as an investment not personal use.

It's a capital asset, with a capital gain, it qualifies for taxation. Doesn't matter why you bought it.

 

[MakinDoForNow]

IRS guidance disagrees...

Capital gains apply to capital assets. It does not have to be an investment.

It simply uncommon for it to be on a vehicle.

https://www.law.cornell.edu/uscode/text/26/1221

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

It's a capital asset, with a capital gain, it qualifies for taxation. Doesn't matter why you bought it.

He has held it long enough for it to be considered long term capital gains. (In effect tax discount for filing income in one year which could move him into much higher bracket. Like helping average his taxes somewhat)!

 

[Tim d]

I ran my Maverick XL Ecoboost AWD 4K tow through Carvana's website to see what they would offer me.
More than $11,000 more than i paid for it. Should I sell?

Respectfully,if this is genuine wouldn't everyone be doing this and getting rich?

 

[flyvertigo]

Respectfully,if this is genuine wouldn't everyone be doing this and getting rich?

It is very genuine.

 

[cavemold]

Depends where you at on your payments now if you own out right it’s tempting . 11k is nice and if you have another car/truck that’s good to go then I would lean towards it . If your final take home pay is less than 4k I wouldn’t do it

 

[GreenLady]

I ran my Maverick XL Ecoboost AWD 4K tow through Carvana's website to see what they would offer me.
More than $11,000 more than i paid for it. Should I sell?

I got an offer on my 22 Maverick FE Lariat Lux hybrid with 25K miles that was $5K more than I paid. My 23 Lariat Lux hybrid is scheduled for production in early June and the dealer said they would match the offer. I figured having a new Mav, no miles and a new warranty for out of pocket about $500 would be worth it. HOWEVER, if I did not have this ‘23 opportunity I would definitely not sell my ‘22! I love my Maverick

I think whatever you buy will end up eating that $11K and possibly more. If you love your Highlander and don’t mind spending your $11K on fuel it would be a good deal. Good luck with your decision!

 

[cavemold]

Mine has gone up 32k agian Fwd xlt Eco nothing special on it but 360 and drop in bed liner. I paid 23,565 for my maverick . I can’t beat the 250 per month payments 0.9% intrest rate . No sell here

 

[quitz]

Congrats on such an insane offer! Did you end up selling it to carvana at this price?

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