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

I've sold a few cars over the years but never reported it to anyone other than the DMV. Never even thought about it.

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).

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

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?

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.

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.

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

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. Check your local accountant to be sure!

WHAT???? It's not enuff that you have to pay sales tax every time a car is sold...you wanna give the feds more????

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

This IS everything I wanted to hear Thanks guys

Next time my accountant wants to report the sale of a car I'll tell him to FUCH off

......b

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.

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

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

(don't forget to write this off as a consultation)

WHAT...."I" made a profit...wait lemme get out my receipts....I doan add dem up....I just weight dem....