Unless you are in a state that I am not aware of ........... no on taxes and I would not report any income. WHY? because you already paid a tax on it if new.... and if bought it used - you did not pay taxes then either, unless from a dealer. Only thing you might ought to have is a detailed bill of sale.
If you've been using it for a non farm business and have been deducting depreciation the proceeds on the percent depreciated are capital gain. Otherwise no. That's how I remember it from 30 years ago anyway.
buying from a retailer who has a tax ID, yes you're probably gonna have to pay tax on it unless your state has laws on the books that specify otherwise
here, you pay tax on any vehicle sold that is over $4000. It it ridiculous. Tax was paid when purchased new. Then it's sold, tax paid again. Every single time it's sold it is supposed to be taxed. It is not just sales tax. It is called sales and use tax. if you are gonna use it you pay tax on it which is in my opinion double taxation since you pay tax on personal property, tax on gas/diesel, tax on basically every aspect....just gets my blood boiling. A few years ago they exempted farmers who file the farm tax exemption but they are cracking down on that too since many owners of 40 acres or more are considering them farms so they can avoid taxes, then they're using their "farm equipment" for recreational use. Side-by-sides have been targeted as of lately and I hear they are basically going door-to-door. I ain't got no farm so I can't speak with firsthand experience in that sense. I just see what's going on with the owners of vehicles that I service/repair at the shop.
Thanks everyone. I've tried to keep this cash only but the best offer I'm getting is from a guy who owns an excavating business and he wants to pay with a certified check. Just want to make sure it doesn't come back to burn me tax-wise.
If you sell it at less than what you paid for it, then there is nothing to report, however, you can't take the loss on the difference between what you paid and what you received. Just like you don't have to report yard sale income, because the government knows that what you paid for it will be more than you sold it for. The exception to the rule, is if the item appreciated in value, and you have a profit. Then it will usually be a long term gain, at the lower rate. Unless you are in a high tax bracket, the government usually doesn't scrutinize everything you do in your life. Now, if your name is Donald, or Hunter, they will put your life under a microscope!
I'm not giving my name, but they scrutinize everything I do too....at an average working person's pay (about $50k/yr).
For many years I always took the standard deduction because it was easier. Generally speaking when I work(ed) on my taxes, I'd have just a little over the standard anyway. After 28 Jan 2011, that practice ended. And because of that, I take every.single exemption, deduction, write-off, etc that I can legally take, and I mean all of them (that I know of--and I try my best to stay up to date on it). They want to play, I'll play...legally and they know it. Taxes are in the back of my mind in about everything I do.
it is ridiculous and it "should" be illegal. But the IRS agent once told me and I directly quote "we are the irs we can do anything we want"
they want you to pay 50% or more taxes on what you own, and they do it legally by playing the wording (just as politicians always do)
On motor vehicles you pay tax on gas/diesel, personal property, sales and use tax, tax on repair and maintenance parts, tire tax (on top of sales and use tax that you also pay on the tires), much much more...it all adds up.
on farm tax exemptions, you have to be careful. I think I mentioned before that they were actively going after people who were using their "farms" for their own tax incentives here. My friend had the agents show up looking for a certain side-by-side as part of an audit. When asked why he was looking for it, it was explained that the tax code requires that if it is claimed on the farm, it must remain on the farm property only and be used for farm purposes...meaning if they found any deer hunting tools or evidence of it going off the property for anything but repair, etc (recreational use), they could be fined. My friend told them to come back with a warrant which they did. I asked him about sale of farm use property and he said that as long as the bill of sale stated that it was sold to the farm's name and not to an individual, it should be fine. Keep a copy of the signed bill of sale and you're good to go. On the financials, cert check should be ok so long as the farm's name is on it and the bill of sale reflects that. Always write up a bill of sale, and if you don't know how, generally your state should have a downloadable template for you to use, on one of their many websites. Unfortunately you have to protect yourself as much as you can regardless of whether you are the buyer or seller. Even best friends, sometimes things happen (happened to me with an old truck). I sold my old chevy to him and listed the sale price on the BOS for a little less than the taxable threshold, but actually sold it for about $1200 more. Cash sale. Well a few days later he had a problem with the truck (transmission, GMC, imagine that!) and took me to small claims over it, and I nearly got my tit in the wringer over the BOS and sale amounts. I easily won the case but with a stern warning from the judge. In my case, unless the sale contract and/or BOS states otherwise, all vehicles are sold in as-is condition at the time of sale so I was cleared of that part, but they sure weren't happy about the listed sale price vs actual cash sale.
here, you pay tax on any vehicle sold that is over $4000.
Here in Ontario, ALL used cars and trucks get taxed at 13% AND you PAY the greater of THEIR 'bluebook' or the actual sale price ! Say you buy a non running pickup(for the xfr case), $100 sale, 'bluebook' says $3500.
You pay 13% on the $3500 even though you only PAID $100 for the wreck....... Nice, eh !!!