Vehicles pay taxes?

[pandymodels051]

Hi all. With the new tax law in effect, if you sell your car thru ebay you have to pay taxes for it? I ask because since I have sold more than $600 this year, ebay requested my social security number for my 1099. Thanks.

[mtgraves7984]

That's a dicey question. I assume that it would be included on your 1099, but that doesn't mean you'll pay tax for selling here.

Wait for posters with eBay Motors experience. Good luck, however you proceed.

[richard1rst]

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@pandymodels051 wrote:

Hi all. With the new tax law in effect, if you sell your car thru ebay you have to pay taxes for it? I ask because since I have sold more than $600 this year, ebay requested my social security number for my 1099. Thanks.

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I assume you mean income taxes (not sales taxes).

YES you have to pay income taxes IF YOU MADE A PROFIT. If you did not make a profit then NO you do not have to pay income taxes.

Why is it so hard to understand. You are paying income tax on NET PROFIT not on what you are selling, and certainly NOT on your total sales.

If this is really confusing you then then RUN do not walk RUN to your local tax accountant.

[the_fancy_fox]

How much did you buy it for? How much did you sell it for? 

If you sold it for less then no. You don’t owe taxes on it BUT you will have to file your taxes and show the loss. If you don’t know how to do this, see a tax preparer. All 1099 forms have to be accounted for on your taxes. 

if you sold the car for more money than you paid you will owe taxes on the difference less any deductions. 

[maxine*j]

There is no new tax law.  There is a new reporting requirement, so payment processors must now issue a 1099K when gross sales exceed $600.  (The threshold used to be $20,000.)

But it does not change your income tax obligation.  Whether or not you owe any tax on the sales, how you figure the net from the sales, whether or not you even have to file and report the income at all, gross or net, depends upon your particular tax situation. 

No two people are in exactly the same tax situation, so you need to talk to an tax accountant or preparer or someone else who can guide you in this.  I know you want a definite answer, here and now, but no one can give you that because no one here knows your situation. 

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[pandymodels051]

I think I going to sell it locally then. Thanks for your reply, it is much appreciated. 

[slippinjimmy]

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@pandymodels051 wrote:

I think I going to sell it locally then. Thanks for your reply, it is much appreciated. 

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If you sell it for more than you paid for it you still need to report it and possibly pay some income tax depending on your other income.

If you sold it for less than you paid for it then you would owe nothing in taxes (on eBay or otherwise).

[coolections]

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@the_fancy_fox wrote:

How much did you buy it for? How much did you sell it for?   If you sold it for less then no. You don’t owe taxes on it BUT you will have to file your taxes and show the loss. If you don’t know how to do this, see a tax preparer. All 1099 forms have to be accounted for on your taxes.  if you sold the car for more money than you paid you will owe taxes on the difference less any deductions. 

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That is not necessarily true. If you bought a car 15 years ago for $30K and sold it today for $20K you would not deduct the whole $20K because of depreciation.

[coolections]

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@pandymodels051 wrote:

I think I going to sell it locally then. Thanks for your reply, it is much appreciated.

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You had better get paid with cash and depending on the amount, do not put it all in the bank at once since you are avoiding income. Even banks are watching money flow.

[Anonymous]

I canceled my account from Ebay being here over 20 years how you gonna give somebody a 1099 for selling your car that you bought and paid more money for than you were selling it for that’s ridiculous

[kh-stanley1]

Hi everyone,

Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread HERE if you wish to continue to discuss this topic.

Thank you for understanding.