Re: The IRS and selling personal cars???
Hey Mark,
I asked a friend who works for the IRS about having to pay capital gaines on selling a car and here is what she sent me.
Yes, he would have to recognize the gain on the sale using Schedule D of Form 1040. The original cost of the car plus the cost of any repairs or improvements made by the guy would be the basis of the car and the gain recognized would be the sales price minus this basis. If the guy intends to add repairs and improvements to the basis of the car I suggest he have proof of the cost of those improvements.
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Russ
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