How does the IRS look at selling an old car for big bucks?

The IRS sees it as earned income and you are required to report it on your taxes. I think its like 15% for the amount you made on the sale of the vehicle.

 

They always find out ....NOW IN THE COMPUTRE AGE ..it is checked now on transfer and thanks you tv and barret jackson for the big no,s heard that in cal. there going to go back and check early sales to find out if the corrected tax was payed if your disabled and not workin check with a good tax guy I cashed in my 401 payed up front but got it all back at the end of the year just think capital gains, those doped need to be payed some how big bro is poss watching the hamb just my 2 cents

 

Not trying to be a jerk but any tax advice you get from the HAMB will almost surely be wrong. Mechanical advice...that's another matter.

 

Hi i thought the red flag notice was lowered from the 10,000

 

You know those soulless ass raiders in DC get a good portion of what we make anyhow. Some days a man just has to keep what he makes or what good fortune brings. Everyone wants a piece right now.
Is is really a mystery that a guy flew a plane into the IRS with 69 BILLION DOLLARS in pork that we pay for. Here is a partial list of what we pay for daily.

Keep your money if you are forced to sell your car

Accounts Receivable Tax, Building Permit Tax, Capital Gains Tax, CDL license Tax, Cigarette Tax, Corporate Income Tax, Court Fines (indirect taxes), Dog License Tax
Federal Income Tax, Federal Unemployment Tax (FUTA), Fishing License Tax, Food License Tax, Fuel permit tax, Gasoline Tax (42 cents per gallon), Hunting License Tax, Inheritance Tax Interest expense (tax on the money), Inventory tax IRS, Interest Charges (tax on top of tax), IRS Penalties (tax on top of tax), Liquor Tax
Local Income Tax, Luxury Taxes, Marriage License Tax, Medicare Tax, Property Tax
Real Estate Tax, Septic Permit Tax, Service Charge Taxes, Social Security Tax, Road Usage Taxes (Truckers), Sales Taxes, Recreational Vehicle Tax, Road Toll Booth Taxes, School Tax, State Income Tax, State Unemployment Tax (SUTA), ,Telephone federal excise tax, Telephone federal universal service fee tax, Telephone federal, state and local surcharge taxes, Telephone minimum usage surcharge tax, Telephone recurring and non-recurring charges tax, Telephone state and local tax, Telephone usage charge tax, Toll Bridge Taxes, Toll Tunnel Taxes, Traffic Fines (indirect taxation), Trailer registration tax, Utility Taxes, Vehicle License Registration Tax, Vehicle Sales Tax, Watercraft registration Tax, Well Permit Tax, Workers Compensation Tax

 

Get the money in cash, go to the bank and rent a safe deposit box, put the money in the safe deposit box and take it out when you need it to make your payments.
Paperwork is low as if for a parts car.
Always fly under the radar.
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Cash!
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Don't put the cart before the horse. If you need to sell the car to survive, then that's where your focus should be. As someone else said earlier in this post, you may not realize the gain you're expecting, if you can sell it at all.

The market's down right now so hopefully you can take advantage of that fact and
"break-even".........Kapeesh?

*The less personal info that you put on the internet for the world to see, the better.

Wishing you all the best.

 

Keep the car. 2/3 of your pay will not be taxed and you will see about the same take home pay. Talk to your bank about refinancing. It appears you don't owe that much on your house and it can also be your tax break.

 

I don't know what the car is but, sell it a piece at a time for cash. Although being injured you might not be able to. Bring it over here, I'll tear anything apart. LOL. Lippy

 

I have no knowledge on the tax, but just wanted to say I hope you get well and things work out for you and wife. We are in some screwed up times right now. I had to sell a 36 chevy pick up when hard times hit me in the 80's. It sucks!!! but best of luck!

 

Best of luck to you and your wife. Consult a pro on the rest.
As for and there will be at least 2 guys who will tell you to bury the money in the yard & tell them you "found it".
I wouldn't even tell them I found anything, comprende?
Any agency that nails the gains but has no simple way to declare the losses is obviously stacking the deck against you.<!-- / message -->

 

and the funny thing is that my wife supports us, she works for Dept of Defense, so all our income is from those evil taxes.

I don't mind giving some back.

 

Where are you guys banking that you have to fill out IRS forms? I deposited a check for $14000 when I sold my pickup, I never had to fill out an IRS form.

Some of you guys are way too paranoid. He bought the car in 1977, you honestly don't think that he's accumulated over 30K expenses with the car in over 30 years?

Capitol gains tax is for these guys that buy cheap cars from people on craigslist who are too dumb or not willing to fix the car, put a few hundred and their time into fixing it, then turn around and sell it for a profit. Or the guys that buy a classic cheap and then throw it on ebay and make a killing.