Insane offer from Carvana.

[paneubert]

I did not ask for it that is what I pay him for, so in fairness for me to believe your comments are based on fact I would expect you to be a CPA or to provide a copy of the guidance or regulations from the IRS that explicitly provides this alleged capital gains tax is not exempt for personally owned vehicles. The main difference is that business vehicles are normally depreciated on taxes and therefore subject to recapture in some cases

Well......Carvana themselves say you do. So there is that.....

https://blog.carvana.com/2020/03/what-to-know-about-taxes-when-you-sell-a-vehicle/

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[Tx_actual]

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 sold mine. Got a crazy offer from a dealer so I listed it online just to see what would happen and I got an offer for 40k the next day. I paid 26.5k.

 

[Ktowntimmy]

If you need the money, sell the Mav.…but I doubt if you could immediately replace it for that. Plus, you’ll be taxed on the profit.

 

[SiGmA_X]

I did not ask for it that is what I pay him for, so in fairness for me to believe your comments are based on fact I would expect you to be a CPA or to provide a copy of the guidance or regulations from the IRS that explicitly provides this alleged capital gains tax is not exempt for personally owned vehicles. The main difference is that business vehicles are normally depreciated on taxes and therefore subject to recapture in some cases

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:

Topic No. 409, Capital Gains and Losses

Almost everything you own and use for personal or investment purposes is a capital asset. Examples include a home, personal-use items like household furnishings, and stocks or bonds held as investments. When you sell a capital asset, the difference between the adjusted basis in the asset and the amount you realized from the sale is a capital gain or a capital loss.

Capital Assets
Capital Assets

Almost everything you own and use for personal purposes, pleasure, or investment is a capital asset. For exceptions, see Noncapital Assets, later.

The following items are examples of capital assets.

• Stocks and bonds.
• A home owned and occupied by you and your family.
• Household furnishings.
• A car used for pleasure or commuting.
• Coin or stamp collections.
• Gems and jewelry.
• Gold, silver, and other metals.
• Timber grown on your home property or investment property, even if you make casual sales of the timber.

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.

 

[Kmart]

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.

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

 

[jsus]

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

Huh?

Personal-use property.

Generally, property held for personal use is a capital asset. Gain from a sale or exchange of that property is a capital gain. Loss from the sale or exchange of that property is not deductible.

 

[James K]

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?

Nice profit on a nice truck. If that's the market then maybe put the effort in to sell it yourself and make a few grand more. If the MPG of the Maverick isn't a big deal then upgrade to a Ranger. If you're over $44.6K AGI, sales tax will be cheaper than capital gains, which is 15%.

 

[Kmart]

Huh?

I am just going by what IRS topic 409 that sigma_X posted said.

 

[jsus]

I am just going by what IRS topic 409 that sigma_X posted said.

I quoted from the shared links, what quote do you see that contradicts that?

 

[Kmart]

I quoted from the shared links, what quote do you see that contradicts that?

The one I referenced in my post that

I quoted from the shared links, what quote do you see that contradicts that?

The one I referenced in my post

 

[Kmart]

Nice profit on a nice truck. If that's the market then maybe put the effort in to sell it yourself and make a few grand more. If the MPG of the Maverick isn't a big deal then upgrade to a Ranger. If you're over $44.6K AGI, sales tax will be cheaper than capital gains, which is 15%.

15% is a long term capital gain tax for assets held over a year, short term capital gain could be more or less tha 15% bases on your income.

 

[Automate]

I sold mine. Got a crazy offer from a dealer so I listed it online just to see what would happen and I got an offer for 40k the next day. I paid 26.5k.

Where did you list it online?

 

[RLader]

Don't forget, the IRS generally requires you to pay capital gains on that $11K

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

 

[Bmr4mav]

Sell it. I did almost a year ago $9500 more than my OTD price.

 

[Automate]

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

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

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