Would you take $5,000 over what you paid?

[IHateSpeedbumps]

Apparently the guy that originally ordered mine was flipping them. He had already bought 2 from the dealer and almost immediately turned around and sold them to the used cat lot for a few thousand dollars. But I guess the market has changed because he didn't bother with this one that arrived a little over a week ago.

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[gp1200x]

Hypothetically,

You initially net $5K, then the short term Federal Capital Gaines are taxed as regular income, so $5000 - 37% CGT = $3150 (then deduct state CGT).

No

Plus it’s the right extra daily driver for my (6) 1000 mile fishing trips annually and I don’t want to endure the reordering process
.

Where are u paying taxes on a used vehicle that you sold even if you made some money on it? I have never done this in 50 years.

 

[Johnkn]

[

Where are u paying taxes on a used vehicle that you sold even if you made some money on it? I have never done this in 50 years.

Page 1 of SF1040, 'Income" #7. Capital Gain....

You know, the form you sign at the bottom before sending to the IRS each year that states:

"Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete".

Don't worry, I'm certain none of the IRS's new 20,000 agents will catch it....


.

 

[gp1200x]

[

Page 1 of SF1040, 'Income" #7. Capital Gain....

You know, the form you sign at the bottom before sending to the IRS each year that states:

"Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete".

Don't worry, I'm certain none of the IRS's new 20,000 agents will catch it....


.

Do you really think the IRS is recording and tracing the sale of all used vehicles???? That is why the states charge a sales tax every time you buy a car (new or used) and then register it. They make money every time a sale occurs since you need to register that car before you can drive it on the road. In some cases they can make $$$ if a car is sold and rebought numerous times throughout its lifetime. In many cases I would never even know how much I bought a car for if I no longer have the original sales receipt and it doesn't matter. I sell at what the market would bear and if I make a profit....good for me but the government is not taking any money from me for it. They don't give me any credit if I sell a vehicle and take a loss on it.....not like stocks where it is all recorded and sent to the IRS where you are allowed take the losses to offset your gains. If you are claiming a profit on a car sold that you made money on... the IRS thanks you but they cannot and will not spend the time to verify it...esp if you are paying them $$$. I have bought and sold 30+ cars...never have I claimed a sale on my taxes...most are losses but some are a few gains...that's the least of my worries filling out my taxes. If your a business then everything changes.

 

[Ranch]

Do you really think the IRS is recording and tracing the sale of all used vehicles???? That is why the states charge a sales tax every time you buy a car (new or used) and then register it. They make money every time a sale occurs since you need to register that car before you can drive it on the road. In some cases they can make $$$ if a car is sold and rebought numerous times throughout its lifetime. In many cases I would never even know how much I bought a car for if I no longer have the original sales receipt and it doesn't matter. I sell at what the market would bear and if I make a profit....good for me but the government is not taking any money from me for it. They don't give me any credit if I sell a vehicle and take a loss on it.....not like stocks where it is all recorded and sent to the IRS where you are allowed take the losses to offset your gains. If you are claiming a profit on a car sold that you made money on... the IRS thanks you but they cannot and will not spend the time to verify it...esp if you are paying them $$$. I have bought and sold 30+ cars...never have I claimed a sale on my taxes...most are losses but some are a few gains...that's the least of my worries filling out my taxes. If your a business then everything changes.

What about the capital gains taxes owed on the vehicles you said made you a gain?

 

[Montana]

Isn't there a limit to how many vehicles sales you can make before having any of this apply?

 

[MakinDoForNow]

I'm not trying to stir the pot but... If you could sell your brand new Maverick for $5k over what you paid within a week would you? I'm asking because it seems someone with a 2023 maverick in hand could walk into a dealership and trade it in for a Ranger and little or no cash. We all love the Mav but Rangers are cool too. I'm just asking. Don't hate me. I saw this on another post here. $43,600 is a Ranger price .

I would sell my First Edition Lariat Tremor 2023 AWD with black appearance PKG for $44,444.44

 

[MakinDoForNow]

What about the capital gains taxes owed on the vehicles you said made you a gain?

I am retired poor boy and have 6-7k left before I step into 10% bracket.

 

[Ranch]

I am retired poor boy and have 6-7k left before I step into 10% bracket.

I'm sorry. I assumed that buying and selling 30 plus cars would add up to a fairly large amount of money. I'm 62 years old and have bought and sold only eight vehicles in my life.

 

[Johnkn]

Do you really think the IRS is recording and tracing the sale of all used vehicles???? That is why the states charge a sales tax every time you buy a car (new or used) and then register it. They make money every time a sale occurs since you need to register that car before you can drive it on the road. In some cases they can make $$$ if a car is sold and rebought numerous times throughout its lifetime. In many cases I would never even know how much I bought a car for if I no longer have the original sales receipt and it doesn't matter. I sell at what the market would bear and if I make a profit....good for me but the government is not taking any money from me for it. They don't give me any credit if I sell a vehicle and take a loss on it.....not like stocks where it is all recorded and sent to the IRS where you are allowed take the losses to offset your gains. If you are claiming a profit on a car sold that you made money on... the IRS thanks you but they cannot and will not spend the time to verify it...esp if you are paying them $$$. I have bought and sold 30+ cars...never have I claimed a sale on my taxes...most are losses but some are a few gains...that's the least of my worries filling out my taxes. If your a business then everything changes.

LOL

Not certain why you are co-mingling the IRS and your state's sales tax..

You are correct, there is no capital loss on private vehicle sales, there is capital gain on any profit...

The IRS is not tracking all used vehicle sales, LOL, they are tracking larger sums of $$ deposited into you bank accounts...

A person's choice to defraud the IRS is their's alone (I certainly don't care) when they sign their return directly below this statement :

"Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete".

The IRS has hired and is actively hiring ~20k employees many of whom are their own profit centers and are tasked with uncovering owed taxes.. Giving them a reason to investigate could result in past year's returns being scrutinized..

The U.S. has changed from a tax perspective in very recent years and Uncle Sam wants and is now insuring that his ( and State's) $$ from every Ebay sale, online sales, etc. and profits is collected and reported..

I'm sure you will be perfectly fine with your unreported capital gains over the years, nothing to worry about.....

good luck....




.

.....

 

[MakinDoForNow]

Isn't there a limit to how many vehicles sales you can make before having any of this apply?

In Texas there is a limit on number of vehicles you can sell in one calendar year before needing a dealers license and collecting sales tax. As far as fed income tax you are supposed to report all income (used to be over $400, not sure currently) for any income even garage sales, mowing yards, etc.....

I'm sorry. I assumed that buying and selling 30 plus cars would add up to a fairly large amount of money. I'm 62 years old and have bought and sold only eight vehicles in my life.

I'm not the guy with the 30 cars. I will report the income on my return but will not owe tax on the adjusted gross for the 6-7k and 10% bracket after that

 

[Ranch]

In Texas there is a limit on number of vehicles you can sell in one calendar year before needing a dealers license and collecting sales tax. As far as fed income tax you are supposed to report all income (used to be over $400, not sure currently) for any income even garage sales, mowing yards, etc.....

I'm not the guy with the 30 cars. I will report the income on my return but will not owe tax on the adjusted gross for the 6-7k and 10% bracket after that

But my post was about the gains made by the guy who bought and sold over 30 cars.

 

[Timothyd]

I'm not trying to stir the pot but... If you could sell your brand new Maverick for $5k over what you paid within a week would you? I'm asking because it seems someone with a 2023 maverick in hand could walk into a dealership and trade it in for a Ranger and little or no cash. We all love the Mav but Rangers are cool too. I'm just asking. Don't hate me. I saw this on another post here. $43,600 is a Ranger price .

Well, wait a minute. I have to get some things out of my Mav Lariat before you take it.

 

[dalola]

LOL

Not certain why you are co-mingling the IRS and your state's sales tax..

You are correct, there is no capital loss on private vehicle sales, there is capital gain on any profit...

The IRS is not tracking all used vehicle sales, LOL, they are tracking larger sums of $$ deposited into you bank accounts...

A person's choice to defraud the IRS is their's alone (I certainly don't care) when they sign their return directly below this statement :

"Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete".

The IRS has hired and is actively hiring ~20k employees many of whom are their own profit centers and are tasked with uncovering owed taxes.. Giving them a reason to investigate could result in past year's returns being scrutinized..

The U.S. has changed from a tax perspective in very recent years and Uncle Sam wants and is now insuring that his ( and State's) $$ from every Ebay sale, online sales, etc. and profits is collected and reported..

I'm sure you will be perfectly fine with your unreported capital gains over the years, nothing to worry about.....

good luck....

C'mon John, those extra 20k IRS agents are only going after the mega rich....you know, the one's with multiple tax attorneys on staff 24/7...... those guys. They won't bother us middle-class deplorables.

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