OT:When You Sell a Car/Vehicle, 1 or 2 a year do you report it to IRS? Options

[Bruce Allert]

I've sold a car now and then, maybe 1 a year and I was told that I should report it as income. I figure I initially paid for the car and actually lost money due to depreciation so I feel I shouldn't need to report it.

What'cha all think or know???

thanks.........b (IMG:http://www.914world.com/bbs2/html/emoticons/beerchug.gif)

[Allan]

I've sold a few cars over the years but never reported it to anyone other than the DMV. Never even thought about it. (IMG:http://www.914world.com/bbs2/html/emoticons/confused24.gif)

[fiid]

I would think if you declared the sale money as income you would also be entitled to deduct the basis price, and any work you had done on it. I don't know how you would account for any useage you had out of it :shrug:

I don't think you need to unless you are calling it a business, which may have other implications (some good some bad).

[fiid]

BTW - YMMV - see a professional for real advice. I am not an expert and any decision you make is your own responsibility.

[Lou W]

Never heard of anybody ever doing that, if you had to do that , then if you loose money, then do you write off the loss?

[Porsche Rescue]

I believe if you make a profit after costs it is technically income and as such reportable. I also believe that only dealers in the business actually report.

[Gint]

Fuch no!

If you were to report it, I'm sure the IRS would gladly accept your tax money. But I don't know anyone who has ever reported it. Including me.

[carambola]

isn't the state getting it's payola due to sales tax paid on a change of title.

[neo914-6]

This was years ago but a Honda/Acura mechanics shop where I took my old Honda used to buy theft recoveries, restore them, and sell them. He told me if you did ~12 a year showing your intent is business, then you would have to report it. He kept it "under" 12. (IMG:http://www.914world.com/bbs2/html/emoticons/laugh.gif) Check your local accountant to be sure!

[Joe Bob]

WHAT???? It's not enuff that you have to pay sales tax every time a car is sold...you wanna give the feds more???? (IMG:http://www.914world.com/bbs2/html/emoticons/flipa.gif)

You bored, in Boring? Pass that fattie over here....

[Bruce Allert]

This IS everything I wanted to hear (IMG:http://www.914world.com/bbs2/html/emoticons/beer.gif) Thanks guys (IMG:http://www.914world.com/bbs2/html/emoticons/clap.gif)

Next time my accountant wants to report the sale of a car I'll tell him to FUCH off (IMG:http://www.914world.com/bbs2/html/emoticons/alfred.gif)

......b (IMG:http://www.914world.com/bbs2/html/emoticons/wavey.gif)

[Porsche Rescue]

Bruce, a bit more relating to our home state. Craig learned from his training (he is now a licensed dealer, perhaps the only one in the nation specializing in 914's) that there is no magic number of transactions that makes you a "dealer". The fine print in our state says that if you buy and sell with the intent to make a profit you need a license. My view is I never intend to make a profit so no license required. Now, if I accidently make some money, Uncle Sam gets a cut, if I tell him about my good fortune.

[Bruce Allert]

QUOTE (Porsche Rescue @ Mar 5 2005, 09:01 PM)

if I tell him about my good fortune.

Ah Ha! I see your "KEY" words Master... Grasshopper will learn & grow (IMG:http://www.914world.com/bbs2/html/emoticons/pray.gif)

thanks Jim and everyone else that put in $.02.......
.........b

(don't forget to write this off as a consultation) (IMG:http://www.914world.com/bbs2/html/emoticons/rolleyes.gif)

[Joe Bob]

WHAT...."I" made a profit...wait lemme get out my receipts....I doan add dem up....I just weight dem.... (IMG:http://www.914world.com/bbs2/html/emoticons/dry.gif)