I sold a car in 2024, would I report this on my tax returns for IRS and the State of NJ
* I sold a car on April 23, 2024 to a scrap company. It was a service to me to have them take the car off my hands, however also they paid me $501.00 for the car.
I made New Jersey my Domicile last year, but I purchased the car when I lived in another state some years ago.
Some of the money I paid for the car was my own money I earned, and some of it was money that other(s) gave me to help me get a vehicle. (I don't know if it makes a difference if the money was money I earned or and a mixture of gift(s) money to help me get a vehicle at least, and my own earned money). Nevertheless, when I purchased the car in the year of 2014, my money which was less, and combined with gift money which was more, was used to purchase the car. The amount before paying taxes to that state, and the title etc. was $4,600.00.
Best Answer
-
Unless the car was used in business or you made a profit on the sale (your proceeds exceed your cost or other basis), this is not something that affects your tax liability and does not need to be reported on your tax return.
5
Answers
-
Thank you.
0