How to handle taxes??

[standupjskiguy]

If and when I sell my 13k GN.
I've heard any transaction over $10K is reported to the IRS.
Like when your buyer gets a cashiers check from the bank.
I assume you then would have to show the transaction on your taxes
and pay any capital gains on a car you bought and sold for more than
you paid for it.
Does anybody have any advice or perhaps their experience on these transactions?

 

[TurboTnZ06]

If you deposit a chunk of cash to the bank, the bank reports it. IIRC, they can report it even if its less than 10k.

 

[John Larkin]

As a business you pay tax on profit. As an individual selling your personal car, I think you will be fine. The state gets their tax from the new owner registering the car and paying sales tax.

Any deposit of $10K or a series of deposits adding to $10K get reported. I wouldn't worry about it. If you are really concerned, call HR Block.

 

[TexasT]

I'm sure you can show where you spent money to improve your investment. I know very few people who can put a car together and make money on it.

Posted from the TurboBuick.Com mobile app

 

[standupjskiguy]

I bought my GN new, in my corp business name. Business has since been dissolved.
I put the car in my name a few years ago. I just transferred the title.
I assume since I wrote the car off in the business and gave it to myself free, my coast basis is zero.
So if I sold it, I'm thinking I'd have to pay income tax on the total price I receive.
I once went to HR Block. Paid $500, they did my taxes but even I could see they missed a lot.
I had stock trades not entered etc. I complained and was sent to another office. He got it straightened
out after me spending a lot of time going back and forth. So I was hoping for someone who may have had
a similar situation for guidance because I have a hard time finding competent services.

 

[Sweet6]

I sold two cars for close to $20k each Both times deposited the check at my bank Never had any questions asked

 

[novaderrik]

tell the guy to bring cash, then hide it in your house and the bank won't have anything to report..

 

[TRICKSIXPA]

Wow, Best advise is to never go to Hr Block, Jackson Hewitt, and so on for tax advise. Its like getting auto repair advise from the local chain auto parts counter person. As long as the person buying the car paid their state taxes then that is all that going to be pursued. Unless your selling used cars for a living there is no need to worry about one transaction. If you did want to report it you would only have to pay tax on the portion of the proceeds that you made a profit on. If you sold your GN for 13k doesn't sound like you made any profit off of it. 10k or more gets reported. I guess I won't bring up 1099-K's