Where do I add these?
My Honda civic got repoed in 23, but since it’s a popular car it sold for a profit and the dealership sent me 3 separate checks of $8000, $50, and $1140.
Where do I add those numbers in the tax return? I have to look it up, but I also sold a lot of Amazon stock. Where do I put those numbers?
Answers
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Hello,
Amazon stock should be reported on the Stocks or Investments Sold section (Income → Stocks or Investments Sold). You may have received a 1099-B reporting that information, but you do not need one to report it.
As for your repossessed car, I am thinking it may need to be reported as a capital gain. Generally, when you own something and then sell it for a profit, it is reported as a capital gain. Here, from what you told us, you bought a car, it was repossessed, the dealership sold it for a profit (which I understand to me that they were able to sell it for more than the remaining your debt of the car, and thus gave you the extra).
If that's the case, then you would also report it on the Stocks or Investments Sold page. Your cost basis would be what you purchased the car for and the sales proceeds would be the costs basis plus the checks you received. Then the software will figure out your overall gain and you will be taxed on that amount.
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the problem is, I have no idea where the letter they gave me is, since my girlfriend likes tossing around my stuff when she’s **** off. So the box that had it, is god knows where in the house, and is more likely not to be found. So I wouldn’t know the disposal date for the car.
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I don’t even remember the site I used for car payments, so I wouldn’t know the down payment my parents had used for the car. It could have been $5,000 but that’s a guess.
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going with those calculations I also owe $2400 counting both federal and state, which I have nowhere enough to pay for.
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$24,899 was how much it was financed if that’s the number you mean by how much it was paid for
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numbers winded up being the same regardless, so no, god, I actually owe money I don’t have.
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Another opinion here: So, usually the sale of personal vehicle is not a taxable event, and I assume you made payments for at least a few months or more. Personal vehicle sales are generally not taxable because the vehicle has sold for less than you paid for it. If the repoed vehicle sold for less than the 24,899 (and possibly an additional 5k down payment making the cost basis 29,899) you would have a loss on the sale of the vehicle. Assuming the vehicle was for personal use, the loss would be nondeductible and non reportable on your return. Therefore the big question is what price did the lender sale the vehicle for at auction? If this was a personal vehicle and the amount was less than either the 24k or 29,800 figure, you do not need to report this sale as income.
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no they made a profit and it resulted in the listed checks
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I had $11000 something on it to pay left and made payments for over 3 years
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If the vehicle was sold for a "profit" that doesn't necessarily mean that the sale resulted in a taxable gain. A profit to the bank would be the amount from the sale that is greater than the remaining balance on the associated loan. This does not always indicate an actual profit because the remaining loan balance does not include the payments made previously.
You will need to determine, based on your personal records, how much you purchased the vehicle for originally and how much the vehicle was sold for at auction. If the sales price is greater than the original purchase price, you may have a gain to report.
If, however, the sales price was less than the purchase price, there is no taxable gain to report.
In either scenario you may still be issued a refund if the sales price was greater than the remaining balance on the loan. While this amount is refunded to you as part of the sale, it is not always taxable income depending on the circumstances previously explained. -
I don’t know why you people keep ignoring the other posts I’ve made showing the stated amounts. Taxes were due Monday.
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Hello X,
Thanks for all the numbers you provided. To figure out any possible gain on the sale we start with your purchase price. You said, "$24,899 was how much it was financed" for. And you told us you had, "$11000 something on it to pay left." And then you told us you got some checks for, "$8000, $50, and $1140."
This means it basically sold for, $20,190 (11,000+8000+50+1140) excluding any selling costs the dealer kept. To find out what your gain or loss is, you subtract the purchase price from the sale price (net any selling costs). $20,190 - 24,899. That results in a loss of -$4,709.
Since you have a loss, you do NOT report that on your tax return.
